States' Failure To Develop Medical Infrastructure Facilitated Growth Of Private Hospitals: Supreme Court

In a PIL raising the issue of private hospitals' alleged compulsion of patients to buy medicines etc. from only the hospital-recommended pharmacies, the Supreme Court today deprecated states across the country over their failure to provide adequate health infrastructure.

This failure, the Court said, has led to the setting up of private hospitals (albeit renowned and specialized) to cater to the needs of all kind of patients.

"...in proportion to the population of this country, the states have not been able to develop the requisite medical infrastructure to cater the needs of all kinds of patients. The states have therefore facilitated and promoted private entities to come forward in the medical field, as a result of which, numerous renowned private hospitals, well known for their specialties, and which are no less than any hospital [all over] the globe, have been setup through the country...Not only the people, even the state also look for these private entities to provide basic and specialized medical facilities to the public at large", observed a bench of Justices Surya Kant and N Kotiswar Singh.

Speaking of states' duty in terms of Part IV of the Constitution (Directive Principles of State Policy), the Court further opined that, "Provision of medical facilities to one and all is a right traceable to Article 21 of the Constitution. The states are therefore committed themselves to provide the medical facilities to people in furtherance of their duty envisioned in Part IV of the Constitution."

In the above backdrop, the Court however also questioned whether it would be prudent for the Union/States to introduce a policy which regulates each and every activity within the compound of private hospitals. "Will such policy have cascading effect, discouraging persons to come forward [and invest in] health industry?" it wondered.

Ultimately, the states were directed to take up policy decisions on the issue, as deemed fit by them.

Case Title: SIDDHARTH DALMIA AND ANR. Versus UNION OF INDIA AND ORS., W.P.(C) No.337/ 2018