Hospital Directed to Compensate for Unfair Practices in COVID Treatment: District Consumer Commission’s Verdict

hospital covid 19 law insider

LI Network

Published on: January 9, 2024 at 09:10 IST

In a recent judgment from the District Consumer Disputes Redressal Commission – I, Hyderabad, Prathima Hospitals, a unit of Sri Sai Balaji Healthcare (I) Pvt Ltd, has been held accountable for unfair trade practices and deficiencies in service.

The ruling orders the hospital to compensate Dr. Ganji Mallaiah, a 70-year-old medical practitioner, under Section 35 of the Consumer Protection Act, 2019, citing excessive charges and unnecessary treatment for a suspected COVID-19 case as reasons.

Dr. Mallaiah, a resident of Gajwel, Siddipet District, visited Prathima Hospitals in Hyderabad on June 29, 2020. Despite testing negative for COVID-19, the hospital admitted him and provided COVID-19 treatment, resulting in a bill of Rs. 4,76,000. The complaint highlighted that these charges contradicted government guidelines, particularly G.O.Rt. No. 248 dated June 15, 2020.

In a ruling issued on January 3, 2024, Mrs. B. Uma Venkata Subba Lakshmi, President, and Mrs. C. Lakshmi Prasanna, Member of the Commission, remarked, “It is evident from the rapid covid antigen specimen referral form that the sample of the complainant was collected on 23.06.2020 and the result status was ‘negative.’ Despite this, the opposite party treated the complainant for ‘suspected covid pneumonia’ with the reason that reports showed corads-5.”

The Commission determined that the hospital’s actions constituted an unfair trade practice, particularly in light of the negative COVID test results. The discharge summary revealed that the complainant was treated for atypical viral pneumonia and comorbid conditions, deviating from the ceiling rates specified in G.O. Rt. No. 248.

The Commission did not grant the full refund requested by the complainant, but instead awarded a lump-sum compensation of Rs. 1,00,000 along with costs of Rs. 15,000. The hospital has been instructed to comply with the order within 45 days.

Prathima Hospitals argued that G.O. Rt. No. 248 was inapplicable as the treatment was for comorbid conditions. However, the Commission dismissed this argument, highlighting that the final diagnosis included ‘suspected covid pneumonia.’

While Prathima Hospitals has the option to appeal the decision, adherence to the order within the specified timeline is mandatory.

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