Overcharging by Private Hospitals: BMC auditors screen 6000 bills worth Rs 112 crore

Written by Sanchari Chattopadhyay Published On 2020-10-23T09:30:20+05:30 | Updated On 23 Oct 2020 5:12 PM IST

Overcharging by Private Hospitals: BMC auditors screen 6000 bills worth Rs 112 crore

Mumbai: In an attempt to monitor overcharging by private hospitals, the Bombay Municipal Corporation (BMC) auditors have screened 6,851 hospital bills which amounted to as much as rupees 112 crores and reduced or made hospitals refund bills to the tune of rupees 14 crores.

This came after the authorities took cognizance of the multiple complaints raised against several private facilities alleging overcharging by the hospitals for treatment. There have been 7000 inquiries or complaints against the hospitals and almost 300 out of them were about overcharging.

Vivek Singh from Apex administration stated that all the complaints of overcharging had been given due importance and it had been resolved.

According to a recent media report In The Indian Express, in mid-August BMC revoked the covid-19 status of 72 nursing homes which indulged in exorbitant billing. By September, 23 of these nursing homes were again deployed for COVID treatment with a strict warning. The additional municipal commissioner expressed that shutting down Hospital is not the solution and added "we want to work with them not against them."

Also Read: India following pre-emptive, proactive response to manage Covid-19 challenges: Dr Harsh Vardhan

As the government capped the price for covid-19 treatment, BMC realized the importance of monitoring the billing process of private hospitals and deployed five IAS officers and 17 auditors to screen the activities of private hospitals.

The Indian Express reports that the auditors found that after the government capped the prices, the private hospitals overcharged on new aspects. On April 30th, the state government fixed the price of consumable at a 10% markup on net procurement cost and introduced a grievance system where patients can file complaints via email against overcharging.

However, they continued receiving complaints and it was found that hospitals were over changing on new components and surgical procedures.

On July 15th one of the private hospitals charged a patient rupees 3000 per day for oxygen for 15 days when the government clearly instructed rupees 300 to 400 per day to put a patient on Oxygen support. The auditors also found out that often the hospitals showed inconsistencies and high cost of PPE to justify their excessive charges. BMC was reportedly compelled to register a formal complaint about one of the Nanavati Hospital for overcharging.

When the state government capped the price of PPE at rupees 600 in a normal word and 1200 for patients per day in ICU and instructed the hospitals to include oxygen as part of bed cost, the hospitals started overcharging patients for HRCT scan, medical waste management, and personal hygiene. In one such instance, Apex hospital of Borivali charged Rs 400 for the handling of biomedical waste per patient, Rs 1,000 for patient hygiene, and Rs 300 for fumigation per day, reports the daily.

"Where the government could regulate prices, it did, but components like medicines and investigations are left to the doctor's discretion. In this, we find hospitals overcharging. If one drug is injected, hospitals charge for the entire strip; if one PPE (personal protective equipment) by doctors or nurses is used for 10 patients in a ward, each patient is billed for a piece instead of the cost being divided," said Prashant Nanaware, who audits five private hospitals in the western suburbs told TIE.

Commenting on the same, the spokespersons of several private hospitals have also pointed out several issues. Dr. Dastur from Bhatia Hospital stated that the hospital spends almost 18 lakh per week on PPE and they will be unable to recover the amount if the prices are fixed by the government. He also pointed out that the monthly salary for ICU staff has been increased due to continuous shifts and they will be unable to pay them without the additional costs.

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Source : with inputs

Sanchari Chattopadhyay

Sanchari Chattopadhyay has pursued her M.A in English and Culture Studies from the University of Burdwan, West Bengal. She likes observing cultural specificities and exploring new places.