Excessive billing for COVID-19 treatment: Hyderabad Hospital told to refund Rs 35.43 lakh to patient's kin

The directive was pronounced on September 4 by Sri M. Ramgopal Reddy, President on behalf of the bench based on a complaint filed by the wife of the patient who died following treatment at Continental Hospitals for COVID-19.

The complaint highlighted that the hospital had raised an exorbitant bill of Rs 48 lakhs, which was significantly higher than the Telangana State Government's prescribed protocol treatment cost of Rs 4 lakhs. The hospital allegedly charged the complainant for unnecessary procedures and consumables, amounting to a staggering Rs 27,36,759 over 36 days of hospitalization. Despite these charges, the treatment ultimately proved fatal, leading to the complainant's husband's untimely death on September 18, 2021.

The complainant alleged that about 15 days after her husband was admitted to the hospital, she found out that his treatment was just an experiment. The hospital used different medicines and chemicals that were not needed and, it allegedly caused the patient's death.

Thereafter, the hospital gave her an extremely high bill of Rs 64,93,694/-. Originally, the complainant had chosen the treatment according to the Telangana State Government Protocol, which should have cost around Rs 4,00,000/-. However, the huge difference between the expected cost and the actual bill left her in disbelief. She strongly objected to the unfair billing and expressed her upset. Later, the hospital issued a new bill, reducing the amount to Rs. 48,00,000/- from the initial sum of Rs. 64,93,694/-. Shockingly, the hospital held the deceased complainant’s husband's body until the entire new amount of Rs. 48,00,000/- was paid.

Later, the complainant asked the hospital to return Rs. 44,00,000/- after deducting Rs. 4,00,000/-, as per the rates set by the Government of Telangana in GO.Rt.No.248 dated June 15, 2020 for Covid treatment, which was Rs. 4,00,000/-. She specifically requested the refund of Rs. 44,00,000/-. She then sent a legal notice, to the hospital. However, they replied denying all the allegations in the legal notice.

The issue was examined by the Commission which noted the billing to be not only excessive but a clear violation of the government-prescribed rates for COVID-19 treatment. Subsequently, the hospital was directed to refund the excess amount of Rs 35,43,386, which is the difference between the actual payment made and the permissible cost as per the state government guidelines.

Furthermore, the hospital was ordered to pay compensation of Rs 50,000 for the mental agony suffered by the complainant, Rs 25,000 as punitive damages to the Consumer Legal Aid Account, and Rs 10,000 towards the complainant's costs. It observed;

"We are carefully observed that, the final bill raised by the opposite party after discount is fixed round of final amount of Rs.45,00,000/- and out of that the opposite party entitled Rs.4,00,000/- as per the GO.Rt.No.248 dated 15.06.2020 and also entitled deduction of heading Nephrology amount of Rs.8,56,614/- balance amount of Rs.35,43,386/- payable to the complainant. The non-refundable amount excess collected by the opposite party which amounts to not only deficiency in service but also attract unfair trade practice and the same is liable to refund along with interest @ 12% from the date of payment 18.09.2021 till the date of realization along with compensation of Rs.1,00,000/- and also punitive damages of Rs.50,000/- is payable to Consumer Legal Aid Account and costs of Rs.10,000/-."

To view the original order, click on the link below: