Higher GST increases hospital tariffs by 12 per cent

Hyderabad: Post GST, the overall hospital tariff charges have been increased by 10 to 12 per cent. Indian Medical Association president Dr T Narsinga Reddy explained, “The direct medical costs have not been increased by the government but the cost of providing the services to the patients has been increased. The consumables, disposables and service maintenance contracts which are provided by the hospital have seen an increase of 12 per cent and this makes the overall services costly.” 

Accordingly, all the hospitals in the city have revised their tariff rates. The annual maintenance contracts of hospital equipment have seen a rise of 12 per cent. 

A senior doctor on condition of anonymity explained, “A hospital that has to maintain MRI, CT scan, robotic machines and other high-end equipments for surgeries will be paying more on the tax as the service charges have increased. This is increasing the cost of maintaining these equipments in the hospital. Now the price will get transferred to the patient.” 

Another senior doctor explained, “In the medical sector, the government has maintained that they have not directly increased the tax but the indirect taxation being levied on the patients is high. All the utilities that are required for patient care have seen a rise and the burden is now being transferred to the patient. Hence the overall healthcare costs have seen a rise.”