Supreme Court Slams States Over Failure to Ensure Affordable Healthcare

New Delhi: The Supreme Court on Tuesday sharply criticized state governments for failing to provide affordable healthcare and essential medicines, stating that this lapse had “facilitated and promoted private hospitals.”

A bench of Justices Surya Kant and NK Singh made the remarks while hearing a Public Interest Litigation (PIL) alleging that private hospitals were forcing patients to buy medicines, implants, and other medical supplies from their in-house pharmacies at inflated prices. The petition argued that both central and state governments had failed to implement regulatory measures to curb this exploitation.

“We agree with you… but how to regulate this?” Justice Surya Kant asked during the hearing.

The court stressed that it is the duty of state governments to ensure accessible medical care and directed them to regulate private hospitals to prevent patients from being coerced into purchasing from in-house pharmacies, particularly when the same drugs are available at lower prices elsewhere.

Additionally, the Centre was instructed to frame guidelines to prevent private hospitals and medical institutions from exploiting patients. However, the court noted that issuing mandatory directions may not be advisable but emphasized the need to sensitize state governments on the matter.

Earlier, the top court had sought responses from states, and several—including Odisha, Arunachal Pradesh, Chhattisgarh, Bihar, Tamil Nadu, Himachal Pradesh, and Rajasthan—submitted counter-affidavits. The states argued that they followed price control orders issued by the central government to ensure that essential medicines remained affordable. They also pointed to fair-price shops established at government hospitals to provide cheaper alternatives.

The Centre, in its response, stated that there is no legal compulsion for patients to purchase medicines exclusively from hospital pharmacies.