The Supreme Court addressed concerns over private hospitals allegedly compelling patients to purchase medicines and other essentials only from hospital-affiliated pharmacies. The court strongly criticized various state governments for their inability to establish adequate healthcare infrastructure, which has ultimately contributed to the expansion of private hospitals across the country.

According to the Supreme Court, the failure of states to provide sufficient medical facilities has created a space for private hospitals to thrive. The bench, comprising Justices Surya Kant and N Kotiswar Singh, remarked:

"...in proportion to the population of this country, the states have not been able to develop the requisite medical infrastructure to cater to the needs of all kinds of patients. The states have therefore facilitated and promoted private entities to come forward in the medical field..."

The court acknowledged that these private hospitals are well-renowned and offer world-class healthcare services. However, it also emphasized that both the general public and the government now rely on private entities to meet even the most basic and specialized medical needs.

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The Supreme Court underscored that providing healthcare services is an essential responsibility of the state. It reiterated that medical facilities are a fundamental right under Article 21 of the Indian Constitution, which guarantees the Right to Life. The court further stressed:

"Provision of medical facilities to one and all is a right traceable to Article 21 of the Constitution. The states are therefore committed to providing medical facilities to people in furtherance of their duty envisioned in Part IV of the Constitution."

The court highlighted that the Directive Principles of State Policy (DPSP), particularly those in Part IV of the Constitution, place an obligation on the state to ensure accessible healthcare for all. However, the existing gaps in public healthcare have made people increasingly dependent on private hospitals.

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While discussing the matter, the Supreme Court also raised a crucial question—should the Union and state governments introduce a policy to regulate every aspect of private hospital operations?

The bench expressed concerns that excessive regulation might discourage private investors from entering the healthcare sector, which could further strain the already burdened public healthcare system. The court observed:

"Will such policy have a cascading effect, discouraging persons to come forward [and invest in] the health industry?"

Given this concern, the Supreme Court left the decision to the discretion of individual state governments, allowing them to formulate policies as they see fit. The judgment advised states to carefully consider the balance between regulation and encouragement of private sector participation in healthcare.

Case Title: Siddharth Dalmia & Anr. vs. Union of India & Ors., W.P.(C) No.337/2018