Hyderabad: Inspired by the recent decision of AAP government in Delhi to impose a penalty of Rs 600 crore on five private hospitals for not providing free treatment to the poor, the Telangana state government has ordered an inquiry to find whether private hospitals in the state, which obtained land at subsidised rates promising to provide free treatment to the poor, have fulfilled their promise.
The government asked the medical and health department to gather details of each and every private hospital on whether they claimed land at subsidised rate, tax concessions enjoyed etc. and whether they are providing free treatment to the poor as per norms.
It asked officials to coordinate with revenue and other departments concerned to find what concessions were extended to these hospitals in undivided AP and on what terms and conditions, and submit the report within three months.
“Several private hospitals have come up in the state, especially in Hyderabad during the last two decades. The government provides some concessions to private hospitals which promise to provide free treatment to certain percentage of poor. However, there are no proper records available with the department over what concessions were extended to these hospitals by governments in undivided AP and whether such hospitals are fulfilling those promises. Officials have been asked to gather details of all private hospitals to get a clear picture on these issues,” said C. Laxma Reddy, TS health minister.
Not only concessions, the government also empanels private hospitals for the medical reimbursement scheme of its employees. Officials said these hospitals sign agreement with government to avail this benefit stating they would, in return, treat 20 to 30 per cent of poor patients for free. As per official estimates, private hospitals earn up to Rs 30,000 per bed and the profit margin is 40 per cent.
Private hospitals claim customs duty exemption / concession to procure high-end medical equipment from foreign countries, promising free treatment to the poor.
However, no one knows whether these promises are kept by private hospitals or not since the government has no regulatory mechanism to monitor the functioning of private hospitals.
