Coronavirus Maharashtra: Private hospital warns of closure over 80:20 rule

Sakal Times Staff
Monday, 20 July 2020

The Maharashtra state government is witnessing a storm of criticism for its decision to limit the treatment charges at private hospitals.

Mumbai: The Maharashtra state government is witnessing a storm of criticism for its decision to limit the treatment charges at private hospitals. The multi-speciality, Breach Candy Hospital has claimed that it has faced “huge financial losses” due to these restrictions. The management of the hospital has advised not to extend the order beyond August 31 or else it will need to take ‘extreme’ decisions. It has indicated that such an extension might result in its closure too. 

As per the orders passed in May, which are expiring at the end of August, pricing limitations were brought in for 80% of the beds in private hospitals, whereas the balance 20% had no limitations. 

An official belonging to the high command of Breach Candy Management team predicted that the pandemic will remain the way it is, causing COVID-19 cases for another whole year. He also remarked on how the 80:20 rule has led to huge losses for the hospital. “If the rule continues to operate beyond August 31, it will become financially unviable, forcing management to consider shutting the unit down,” he added.

It is reported that a public charitable trust runs the hospital and it has no external source of funding. The operations of the hospital are managed through the profit it makes. 

Even though private healthcare institutions like these are crying foul over the scheme, public health activists are supporting the 80:20 rule. Some have advised that instead of scrapping the scheme, the government must ensure that the more people are educated about it.   

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