External agency should fix rates: Hospitals

KOLKATA: Private hospitals in Kolkata want an independent agency to evaluate their charges and suggest if they can be sustainably reduced and brought closer to the state government’s Swasthya Sathi rates that have been taken as a reference point for charge rationalization.
At a meeting with the West Bengal Health Regulatory Commission on Tuesday, where the hospitals were asked to respond to the commission’s call for lowering of charges, the latter made it clear that the reference rates were not practical and they would prefer an external agency to analyze their cost structure and suggest a realistic rate pattern.Private hospitals have been asked to explain their rates for every procedure and package by August 15.
“At the meeting, we suggested that an independent agency be given the charge to analyze our cost structure. It will be more acceptable to both parties,” said R Venkatesh, Narayana Health zonal director (east).
The Swasthya Sathi scheme was introduced to help provide treatment to the underprivileged at an affordable cost. But its rates are less than 40% of what private hospitals charge on an average for procedures and packages. “These rates won’t even cover the cost of consumables for us. Our maintenance costs are very high and the charges have to cover that. We are looking ahead to future interactions with the commission. But the key will be the analysis of cost structure which will be done after August 15,” said an official from a hospital. The commission, however, refused to disclose if an agency will be appointed for the job.
It will be in the best interests of hospitals and the public if an independent agency was roped in, felt Alok Roy, chairperson, Medica Superspecialty Hospital. “We have strongly put forward the suggestion for it will lend credibility to the procedure. While we won’t be accused of inflating our prices, the commission, too, can’t be blamed for being unreasonable. I hope they seriously consider the proposal.”
An acceptable rate structure was on the cards, felt P L Mehta, president of the Association of Hospitals of Eastern India (AHEI).