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Punjab considers introducing law to regulate private hospitals

The Aam Aadmi Party (AAP)-led Punjab government is considering implementing the Punjab Clinical Establishments Act, 2020 to regulate private hospitals.

The Aam Aadmi Party (AAP)-led Punjab government is considering implementing the Punjab Clinical Establishments Act, 2020 to regulate private hospitals. (HT File)
The Aam Aadmi Party (AAP)-led Punjab government is considering implementing the Punjab Clinical Establishments Act, 2020 to regulate private hospitals. (HT File)

This is the second time that efforts are being made to implement the bill passed by the previous Congress government under Chief Minister Captain Amarinder Singh. This time, the bill could not see the light of the day due to various pressures and hurdles related to the regulation of private hospitals.

In 2020, the law was passed, but the rules and regulations have not yet been created.

However, the current government has made renewed efforts to frame rules and regulations, considering reports of private hospitals charging high fees to patients.

Although the move is at an early stage and the health department has only asked a group of senior officials to recommend the legislation, senior officials said there is a strong belief within the government that the Clinical Facilities Act is the need of the hour.

It is learnt that a team led by senior medical officer of the health department Dr Gagan Grover has been tasked to look into the issue.

Also in the previous term of Congress, the Department of Health was ready to implement the bill before focusing on Cabinet approval.

However, at the last minute the decision was made to withdraw the bill and it was shelved.

The main aim of the bill was to curb price gouging in private hospitals, a key promise made by the Congress in its manifesto ahead of the 2017 general elections. However, the bill did not address this issue and stated that all clinical facilities would set their own bed charges and disclose package rates after diagnosis, and strictly follow procedures related to the operating room, intensive care, ventilation, implants, consultations and tests.

“Any additional treatment or procedure will not incur additional charges beyond the fixed rates and fees, including package rates,” the law states.

The Act also required private hospitals to provide proper estimates of the cost of treatment before it began. The final bill could not exceed an amount specified by the government as a certain percentage.

“We have started examining the Act and consultations are on to frame rules and regulations. We will also consult private hospitals in these deliberations,” said a senior health department officer.

Box: Key provisions of the Act

Private clinical facilities will be required to disclose their services and fees.

A public complaints mechanism to enable you to lodge any complaints about treatment, incorrect billing, service failures and staff conduct.

Clinical facilities must provide treatment using available personnel and facilities to provide first aid to all victims of road, rail and aircraft accidents, explosions, natural disasters and catastrophes who present themselves or are brought to the clinical facility.

Any clinical facility with more than 100 beds may attempt to open a fair-price medicine outlet and a fair-price diagnostic center.