Supreme Court Critiques Profit-Driven Practices in Private Hospitals

The Supreme Court has condemned the commercialization of private healthcare, highlighting the burden on patients due to inflated drug prices.

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Apla Nagpur Desk
29 Sept 2026, 2:49 PM IST · 2 min read
Source: Barandbench
Supreme Court Critiques Profit-Driven Practices in Private Hospitals
KEY TAKEAWAYS
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The Supreme Court criticized corporate hospitals for prioritizing profits over patient care.

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Patients are forced to buy overpriced medicines from in-house pharmacies, impacting their treatment.

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The Court has scheduled further hearings on October 12 to address these issues.

On Tuesday, the Supreme Court of India expressed serious concerns regarding the commercialization of private healthcare, emphasizing that corporate hospitals function more like profit-driven industries than genuine service providers. This observation arose during the ongoing case of Kishan Chand Jain v. Union of India, where the Court noted that ordinary citizens are disproportionately affected by exorbitant drug prices.

The Bench, comprising Justices Vikram Nath and Sandeep Mehta, pointed out that patients admitted to corporate hospitals are often compelled to purchase medications exclusively from the hospital's pharmacies at inflated prices. Those who attempt to bring their own medicines face the risk of being denied treatment, raising significant ethical questions about patient rights and hospital practices.

This hearing follows a previous session where the Court highlighted a shocking ten-fold price disparity for a cancer medication, with a Price to Retailer (PTR) of ₹2,700 compared to a Maximum Retail Price (MRP) of ₹27,000. The Court had previously described such markups as an "absolute rampage and carnage," calling for urgent reforms in pricing practices within the healthcare sector.

During the latest proceedings, the Bench raised concerns about the reimbursement process for government-sponsored treatment, where corporate hospitals receive full compensation based on these inflated MRPs. The Justices questioned the rationale behind the government's inconsistent pricing policies, particularly the distinction between essential and non-essential drugs, and advocated for a uniform pricing cap across all pharmaceutical products.

The Supreme Court's remarks underscore a growing crisis of consumer trust in the healthcare system, as patients fear that lower-priced alternatives may be counterfeit. The Court has given the Solicitor General until October 12 to consult with relevant government departments and propose a balanced solution to address these critical issues affecting patients and taxpayers alike.

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