Market Jitters Affect Hospital Stocks.!
The Act mandates that the central government collaborates with states and union territories to set hospital fees. The supreme court directed the Secretary of the health Department to work with states and union territories to formulate a proposal within six weeks. The supreme court, during the hearing, questioned why hospital service rates had not been fixed despite the existence of the act for 12 years. If the central government fails to submit a proposal, the supreme court indicated that it may implement CGHS rates across all private hospitals, offering relief to the public.
Implementing CGHS rates could pose challenges for private hospitals, potentially leading to financial losses. Experts express concerns that such a move could result in negative Ebitda situations for most hospitals, as the uniform rate of services may not data-align with the diverse technology and quality services offered across different establishments. The potential negative impact on the shares of hospitals like KIMS, Yatharth, Narayan, Max, and Fortis is anticipated if stringent rules are enforced.