The Competition Commission of India (CCI) is inquiring into a matter (Case No. 77 of 2015) for alleged violation of provisions of Section 3 and 4 of the Competition Act, 2002 relating to imposition of unfair prices by private super-speciality hospitals.

Finding prima facie contravention of the provisions of the Act, the Commission referred the matter to the Director General (DG) for investigation. Pursuant to the aforesaid order of the Commission, the DG submitted the investigation report.

After perusing the material on record, the Commission noted that huge profit margins are being earned by sale of products to the locked-in in-patients to the detriment of such patients. Considering the mandate given to the Commission to eliminate the practices having adverse effect on competition and to protect the interest of consumers, the Commission decided to widen the scope of investigation to cover the practices of super specialty hospitals across Delhi in respect of healthcare products and services provided to their in-patients. Investigation will focus on the products sold by the super specialty hospitals to their in-patients which are not required on an urgent basis for any medical procedure / intervention or which do not involve any high degree of quality issue from the medical procedure point of view and for the purchase of which the patients have the time and scope to exercise their rational choice to purchase such products from open market where such products may be available at lower rates. The Commission has directed the DG to complete investigation expeditiously.

By broadening the scope of investigation in the matter, the Commission aims to prevent practices having adverse effect on competition in the tertiary healthcare sector.  

A copy of the order of the Commission passed in Case No. 77 of 2015 has been uploaded on the website of the Commission at www.cci.gov.in.

Unfair pricing by hospitals: probe widened to examine sales to in patients that limit market choice and competition. Allegations of unfair pricing by private super-specialty hospitals for products sold to locked in in patients prompted a Commission inquiry and referral to the Director General. The Commission found prima facie substantial profit margins on such supplies and widened the scope of investigation to examine hospital sales practices across Delhi, focusing on non urgent products for which patients could reasonably obtain alternatives from the open market, directing the DG to complete the extended probe expeditiously to address practices having an adverse effect on competition.