Max Healthcare chief opposes Parliamentary panel’s hospital room price cap

The Story in Brief

Max Healthcare chairman Abhay Soi has opposed a Parliamentary panel's recommendation to cap private hospital room rents in major cities at the average tariff of three-star hotels in the vicinity. Speaking on the earnings call, Soi argued that while affordability is important, the need for new hospital beds and viability of investments must also be considered. He said wise minds will reconsider a blanket cap once both aspects are weighed, and asserted that Max Healthcare is not altering its expansion plans as the policy could create consolidation opportunities.

On new clinical guidelines by the General Insurance Council aimed at curbing unnecessary hospitalisation, Soi said admission decisions are between doctors and insurers, not hospitals. He added that hospitals only provide logistics and infrastructure. His comments come as the Association of Healthcare Providers of India warned against insurers using the guidelines to deny cashless approvals.