Parliamentary Panel Recommends Capping Private Hospital Room Charges at Three-Star Hotel Rates
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 located near the hospital. The recommendation comes amid concerns over wide differences in healthcare costs between government and private hospitals and the growing burden of out-of-pocket expenditure on patients.
Committee Recommends Room Charge Benchmark
In its 176th report tabled in the Lok Sabha, the Committee noted that hospital room charges vary significantly across geographic locations and even among hospitals operating in the same area. It proposed using the average room tariff of nearby three-star hotels as a benchmark for rationalising private hospital room charges.
The Committee recommended making this benchmark mandatory for all private hospitals in large metropolitan cities. It said additional costs related to resident doctors, nursing, disposable consumables, meals and laundry could be added to the basic room tariff to rationalise the overall cost.
The panel also recommended greater investment in public healthcare infrastructure, regulation of private hospital charges, improved availability of specialists, strengthening of medical education and wider use of technology in healthcare delivery.
Wide Gap Between Government and Private Hospital Costs
The recommendation was made against the backdrop of a substantial difference in hospitalisation costs between government and private healthcare facilities. Citing the 80th round of the National Sample Survey covering January-December 2025, the Committee said the average cost of hospitalisation was Rs 6,631 in government hospitals compared with Rs 50,508 in private hospitals.
The Committee observed that treatment in private hospitals can cost five to 10 times more than in government facilities. It highlighted childbirth and serious illnesses such as cancer, heart disease and kidney failure as areas where the cost difference is particularly significant.
The panel also noted that 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.
Focus on Healthcare Affordability
The Committee expressed concern over the increasing financial burden on patients and called for measures to improve the affordability and accessibility of healthcare services.
It recommended rationalising private hospital room charges while allowing costs related to resident doctors, nursing, consumables, meals and laundry to be incorporated into the basic room tariff.
The report also called for strengthening public healthcare infrastructure and specialist availability, along with improvements in medical education and the adoption of technology to enhance healthcare delivery.
Important Highlights
- Parliamentary Committee recommends capping private hospital room charges in large metropolitan cities.
- Three-star hotel room tariffs near the hospital have been proposed as the benchmark.
- The Committee recommends making the benchmark mandatory for private hospitals in large metropolitan cities.
- Average hospitalisation cost was Rs 6,631 in government hospitals compared with Rs 50,508 in private hospitals.
- The Committee said private hospital treatment can cost five to 10 times more than treatment in government facilities.
- The panel also recommended stronger public healthcare infrastructure, specialist availability, medical education and healthcare technology.
