Hospital bills under the lens: Who sets the price of getting well?

Patients pay more not only for medicines and consumables carrying inflated maximum retail prices (MRPs), but also for hospital stays. (Representational image via Canva)

6 min readOct 12, 2026 07:33 AM IST First published on: Oct 12, 2026 at 07:33 AM IST

A social media post last month by Maharashtra FDA commissioner Tukaram Mundhe drew fresh attention to a long-standing problem in Indian healthcare: steep markups on medicines, consumables and even hospital services. The issue of cancer drugs being sold at prices several times their procurement cost has also come under the Supreme Court’s scrutiny. The Centre has since decided to cap trade margins at 30% on select life-saving but expensive medication. But drug pricing is only one part of a larger debate on how healthcare costs are determined — and who ultimately bears them.

Activists point to the influx of foreign and private capital, vertical consolidation — where the same company owns hospitals, pharmacies, diagnostic centres or insurance businesses — and hospitals using their dominant position to steer patients towards their own pharmacies and diagnostic services. They have urged the government to investigate and intervene. The push to regulate healthcare profits could have significant implications: the private sector accounts for nearly 60% of in-patient care and 70% of outpatient care in India. The challenge is to curb excessive charges without compromising the availability of medicines and services.