Mumbai: NATHEALTH, the industry body which represents India’s private healthcare sector has opposed the parliament panel’s suggestion to cap room rents in private hospitals in major metropolitan cities to the average tariff charged by three-star hotels nearby.
The recommendation is part of the parliamentary standing committee’s report on the affordability and accessibility of healthcare facilities in the public and private sector.
The report said the lack of transparency in fixing room charges has led to a wide gap in hospital bills between the private and public sector.
“Average cost of hospitalisation was Rs 6,631 in government hospitals compared with Rs 50,508 in private hospitals,” the panel said citing data from the 80th National Sample Survey covering 12 months from January to December 2025.
“For childbirth, the average out-of-pocket expenditure was Rs 37,630 in private hospitals against Rs 2,299 in government facilities,” the panel added.
NATHEALTH expressed reservations to the proposal saying that it is important to take into account the different categories of hospitals, geographies, and care settings while undertaking such a costing exercise.
Siddhartha Bhattacharya, Secretary General, NATHEALTH said, “As ideas such as standardised treatment packages and room-rent benchmarks are evaluated, it will be important to undertake a comprehensive costing exercise across different categories of hospitals, geographies, and care settings.
“As we understand, pricing and costing are not the same, particularly when subsidies and differing operational efficiencies influence the risk-reward equation of various care delivery models.”
The body said that if a pricing framework is to be implemented, it should take into account the high cost of investments in the sector related to various factors.
He added, “It is worth noting that healthcare requires over USD 300 billion in immediate investment capital, while the sector grapples with twin pressures: ensuring affordability and sustainable pricing on the revenue side, while also attracting capital despite having one of the lowest returns on investment among the top 20 sectors of the economy.
“Whether public or private, healthcare delivery, unlike the hospitality sector, involves significant costs related to infection control, specialised infrastructure, regulatory compliance, medical technology, and round-the-clock clinical support. These realities, including more than 25,000 healthcare-related compliance requirements, need to be reflected in any pricing framework to ensure that quality of care is upheld in line with the highest clinical standards.”
