Court slaps Rs 2 lakh Compensation on Hyderabad Hospital for Overcharging COVID-19 patient

Hyderabad: The District Consumer Court in Hyderabad recently directed Malakpet based Metrocure Hospital to pay Rs 2 lakh compensation to a patient for overcharging him while providing treatment for pneumonia and COVID-19 infection.

Taking note of the fact, that the State Government of Telangana had fixed the maximum rates chargeable by private hospitals for various services provided by them for COVID-19 treatment, the Consumer Court compared the medical bill charged by the Hospital and noted that the hospital had demanded exorbitant fees from the complainant.

Therefore, directing the hospital to pay Rs 2 lakh compensation to the complainant the consumer court in Hyderabad noted, "In view of the above findings, the complainant is entitled for compensation for the amounts excessively collected by the Opposite Party as against the charges fixed by the Government of Telangana through the orders mentioned above and the Opposite Party is liable to pay the same along with reasonable compensation for the mental agony and loss incurred by the complainant and his family."

The complaint was filed by the GPA holder of a 52 years old man who had been admitted to Malakpet based Metrocure hospital back in July 2020 for treatment of Bilateral Pneumonia, Corads-5. The patient was kept in Intensive Care Unit and he got discharged after a few days. While the hospital's total bill was Rs 5, 40,518, the complainant paid Rs 4, 10, 000 in total.

Thereafter the complainant's GPA Holder approached the District Forum and submitted that the Hospital had collected huge amounts for the treatment and services which was not only false representation but it also amounted to unfair trade practice. It was further pointed out in the complaint that the hospital had charged excessively during the pandemic, violating the Government Directions for fixing the ceiling on the rates chargeable by the private hospitals towards covid related investigation tests and treatment.

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It was further submitted by the complainant that his wife and minor children suffered enormous trauma and mental agony in addition to the financial burden owning to the exorbitant medical expenses incurred during the complainant's hospitalization.

On the other hand, the hospital denied the allegations and contended that the complainant had been admitted with serious health condition of cough, fever and uncontroller blood sugar levels. He had been kept in the ICU after necessary tests and the reports revealed that he was infected with Coronavirus. Therefore, the complainant had been given treatment for LRTI with bilateral pneumonia, corads-5, HRCT, and DM type-2. The hospital further submitted that the complainant had been treated with appropriate antibiotics, antivirals, antiplatelet, anticoagulants, MVIs, steroids and other supportive drugs and was kept on NIV support before discharge.

Referring to this, the hospital submitted that the hospitalization charges were reasonable/ affordable when compared to other hospitals and the complainant cleared the medical bill without a demur. Therefore, seeking dismissal of the complaint, the hospital claimed that there was no unfair trade practice as alleged by the complainant.

In support of the claims made in the complaint, the complainant's GPA holder submitted affidavit and along with various receipts and the final bill of the patient.

While considering the complaint, the District Court took note of the fact that COVID-19, which causes severe acute respiratory syndrome coronavirus-2, led to a global pandemic resulting in more than 180 million cases and almost 4 million deaths as of July 2021. Treating it as "Notified Disaster" under the Disaster Management Act, 2005, Telangana government had fixed a ceiling on rates to be charged by private hospitals and laboratories for COVID-19 treatment and testing. The State Government of Telangana on 15.06.2020 had fixed the maximum rates chargeable by private hospitals for various services provided by them for COVID-19 treatment and for conducting RT-PCR testing by private laboratories.

The District Consumer Court compared the rates specified by the Government with the hospitalization charges by Metrocure Hospital and noted that the hospital charged excessive amount for Intensive Care Unit, investigation charges, pharmacy charges and other services violating the orders of the Government.

At this outset, the bench noted, "It is abundantly clear from a bare perusal of Ex A-2 and Ex B-4, that the charges collected by the Opposite Party are in gross violation of G.O. Nos. 248, 281, 491, 539 & 401 issued by HM & FW(D) Department dt. 15/6/2020, 6/7/2020, 18/11/2020, 21/12/2020 and 22/6/2020, which are issued by the Telangana government capping the rates to be charged by private hospitals and laboratories for COVID-19 treatment and testing. Hence, this point is answered in favour of the complainant."

Therefore, observing that the complainant was entitled for compensation, the bench noted, "In view of the above findings, the complainant is entitled for compensation for the amounts excessively collected by the Opposite Party as against the charges fixed by the Government of Telangana through the orders mentioned above and the Opposite Party is liable to pay the same along with reasonable compensation for the mental agony and loss incurred by the complainant and his family."

Finally, the court directed the hospital to pay Rs 2 lakh as compensation and another Rs 10,000 as cost of litigation to the complainant within 45 days from the date of the receipt of the order.

To read the order, click on the link below.

https://medicaldialogues.in/pdf_upload/hyderabad-district-court-186564.pdf

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