Hospital room charges should not exceed average 3-star hotel tariffs: Parliamentary panel

Adity Saha

Hospital room charges should not exceed average 3-star hotel tariffs: Parliamentary panel

Written By : Adity Saha Published On 2026-08-11T16:00:08+05:30 | Updated On 11 Aug 2026 4:00 PM IST

New Delhi: A Department-related Parliamentary Committee on Health and Family Welfare has recommended that private hospitals in large metropolitan cities cap room charges at the average tariff of three-star hotels in the area around the hospital.

In its 176th report, the Committee report tabled in the Lok Sabha, pointed out that hospital room charges vary widely between locations and even among hospitals in the same area. It proposed using nearby three-star hotel tariffs as a benchmark to rationalise private hospital room charges. Costs such as resident doctors, nursing, consumables, meals and laundry could be added to the basic room tariff.

The Committee has recommended increasing investment in public healthcare infrastructure, regulating private hospital charges, strengthening specialist availability, improving medical education, and expanding the use of technology in healthcare delivery. The report examines the affordability and accessibility of healthcare in India, with a focus on the rising burden of out-of-pocket expenditure on patients.

"The Committee is of the considered opinion that some private hospitals levy or charge large amounts for hospital stays especially in metropolitan cities. Having analysed the break up of the hospital billing structure the Committee believes that rationalizing of room charges needs to be done on an emergent basis.The Committee understands that hospital room charges are not uniform and vary across geographic regions and even among hospitals within the same area due to differences in infrastructure, service levels and operating costs. The Committee hence recommends that the room charges for a hospital should not exceed the average room tariffs prevailing in three star hotels in the peripheral area or vicinity of the hospital. The Committee recommends for making this benchmark mandatory for all private hospitals in large metropolitan cities. The resident doctor cost, Nursing cost, disposable costs of consumables, meal charges, laundry charges can be added to the basic room tariff so that the entire cost is rationalized," the committee report stated.

The recommendation comes amid a major gap between healthcare costs in government and private hospitals. Citing the 80th round of the National Sample Survey for January-December 2025, the Committee said average hospitalisation costs Rs 6,631 in government hospitals compared with Rs 50,508 in private hospitals.

It noted that private hospital treatment can cost five to 10 times more than treatment in government facilities, with childbirth and serious illnesses such as cancer, heart disease and kidney failure showing a particularly wide gap.

"The latest National Statistical Office survey (80th round of the National Sample Survey January-December 2025) highlights India‘s deepening healthcare affordability crisis. The Committee notes with deep concern that treatment in private hospitals is often five to ten times costlier than in government facilities, with childbirth and serious illnesses like cancer, heart disease, and kidney failure reflecting the sharpest divides. The average cost of inpatient treatment for an illness in India is about Rs 37,858, while out-of-pocket expenditure is about Rs 34,064. The average cost of hospitalization is Rs. 6,631 in government hospitals compared to Rs. 50,508 in private hospitals. The gap widens further for serious illnesses such as cancer, heart disease and kidney failure," the panel noted

Also read- How to prevent future unemployment of doctors? Here are parliamentary panel's recommendations

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Adity Saha

MA in Journalism and Mass Communication

Exploring and learning something new has always been her motto. Adity is currently working as a correspondent and joined Medical Dialogues in 2022. She completed her Bachelor’s degree in Journalism and Mass Communication from Calcutta University, West Bengal, in 2021 and her Master's in the same subject in 2025. She mainly covers the latest health news, doctors' news, hospital and medical college news. She can be contacted at editorial@medicaldialogues.in

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