Parl panel suggests capping pvt hospital room rates at 3-star hotel tariff
The Parliamentary Committee on Health and Family Welfare has recommended capping room charges at private hospitals in large metropolitan cities at the average tariff of three-star hotels in the area surrounding the hospital.
The recommendation is part of the committee’s report on the affordability and accessibility of healthcare in India. It noted that hospital room charges vary widely across locations and even among hospitals in the same area.
“Having analysed the break up of the hospital billing structure, the Committee believes that rationalising of room charges needs to be done on an emergent basis. 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 report said.
The committee said expenses related to resident doctors, nursing, consumables, meals and laundry could be added to the basic room tariff while calculating the overall cost.
It also recommended the three-star hotel tariff benchmark be made mandatory for private hospitals in large metropolitan cities.
Gap between hospital and hotel room rates
The report cited examples of the gap between hospital and hotel room rates. At Nanavati Max Hospital in Mumbai’s Vile Parle West, a single private room costs ₹6,000–₹12,000 a day, against ₹2,500–₹4,500 a night at three-star hotels in the area. At Max Super Speciality Hospital in Saket, Delhi, private rooms cost ₹7,000–₹11,500 a day, compared with ₹2,100–₹3,500 at nearby three-star hotels.
Private healthcare costs
The committee cited National Sample Survey data for January-December 2025, which showed average hospitalisation costs of ₹6,631 in government hospitals, compared with ₹50,508 in private hospitals.
For childbirth, average out-of-pocket medical expenditure was ₹37,630 in private healthcare facilities, against ₹2,299 in public ones. The parliamentary panel has linked high private healthcare costs to concerns over excessive billing, unnecessary diagnostics and high charges for routine procedures.
Greater price transparency needed
The committee also recommended fixed and unified package rates for standard medical and surgical procedures across public and private healthcare institutions. These should include surgeon fees, diagnostics, consumables and standard post-operative care.
For complex or prolonged treatment, it recommended that the hospitals provide patients with a comprehensive, legally binding cost estimate before treatment begins. It also proposed dedicated financial navigators to help patients understand treatment costs, financial assistance and insurance coverage.
The committee also called for greater capacity in government hospitals, including more beds and specialist doctors, to reduce dependence on costly private healthcare and lower out-of-pocket spending.
