Telangana: Luxury tax notices to private hospitals

While not ruling out a possibility of a strike by nearly 2,500 THANA members, including 1,200 hospitals in the city, Rao told TOI that the move would affect them as well as the patients who would have to bear the rising medical expenditure. In fact, it is estimated that the 1,200 hospitals in Hyderabad and Ranga Reddy districts would have to annually collect Rs 36.5 crore more from their patients if forced to pay up the new luxury tax.

"Though CTD Hyderabad has not yet issued notices to us, the moment they start coming after us for collection of luxury tax, many of our members would have to shut down. This is because 80% of the 1,200 private hospitals in Hyderabad have less than 25 beds and they would be hard hit," explained Dr B Narender Reddy, city president elect of THANA, Hyderabad.

There are 15 top corporate hospitals and around 10,000 beds available in 1,170 odd nursing homes and hospitals in the city. These special rooms are given at an average of Rs 1,000 per day of hospitalisation.

Saying that equating treatment with luxury is wrong, Dr Narender Reddy rued that if the state is adamant on collecting luxury tax, hospital managements would have to charge at least Rs 100 more from each patient admitted in the special rooms.