The Hindu : L-G requested to reduce permission fee on nursing homes

Online edition of India's National Newspaper
Wednesday, Feb 25, 2004

New Delhi

New Delhi

L-G requested to reduce permission fee on nursing homes

By Bindu Shajan Perappadan

NEW DELHI, FEB. 24. Advocating the cause of nursing homes in the Capital, the Delhi Health Minister, Yoganand Shastri, has written to the Lieutenant-Governor, Vijai Kapoor, forwarding to him a request by the Delhi Medical Association (DMA) to either do away with or drastically reduce the annual permission fee imposed on nursing homes operating from residential premises.

Dr. Shastri has requested the Lieutenant- Governor to look into the matter and reduce the permission fee to 1 per cent as is applicable in the case of guesthouses. He argued that while the permission fee has been kept at the rate of 10 per cent for banks and nursing homes, the guesthouses were charged only 2.5 per cent annually.

The Minister has asked that the fee imposition be either done away with or reduced to 1 per cent.

In a letter addressed to the Lieutenant-Governor, Dr. Shastri drew attention to the newly imposed annual permission fee and stated that "any improvement in the health services of Delhi will have to be in the interest of the people and this in turn will also reduce the burden from government hospitals making them available for the poor.'

"I was surprised to note that the permission fee has been kept at the rate of 10 per cent for bank and nursing homes and 2.5 per cent for guesthouses which is the same as the difference between average commercial rates and average residential rates. This will create an anomalous situation to a great extent and may not be in the interest of public in broader term,'' noted the Minister.

Dr. Shastri felt that the issue needs to be reviewed and the case of hospitals and nursing homes considered in a sympathetic way.

Speaking on the issue, the DMA president, Anil Bansal, said: "The doctors were shocked with the order and we have appealed that rates should be slashed or taken back completely. The nursing homes should not be viewed only as a `profit making' institute, it provides employment to many and provides health services to many. Putting pressure on the Centre and draining it financially will adversely affect the patient care and in turn will also push up medical expenses for the patient. We hope the government will pay heed and do the needful.''

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