Max Healthcare chairman opposes blanket price cap on hospital rooms

Abhay Soi, chairman of Max Healthcare, has said that a blanket price cap on private hospital room rents would need to be reconsidered once affordability is balanced against the need for new hospital beds. He was responding to a Parliamentary Standing Committee on Health and Family Welfare report that recommended basic room charges at private hospitals in major metros should not exceed the average room tariff of a three-star hotel in the hospital's vicinity.

Speaking during an earnings call, Soi argued that the healthcare sector needs a viable and investment-friendly environment. He said Max Healthcare is not reconsidering its expansion plans due to the proposed caps, and that any such policy could become an opportunity for consolidation for the company. On new clinical guidelines from the General Insurance Council aimed at curbing unnecessary hospitalisation, Soi said admission decisions are between doctors and insurers, not hospitals.

The Economic Times report notes that top private hospital chains argue that price caps may stifle growth. The report also highlights a surge in private equity deals in healthcare, with nearly 60 deals worth Rs 49,000 crore signed in three years, and that private hospitals account for nearly 58% of hospitalisations in rural India and 64.6% in urban centres.