Competent Authority Must Give Reasons in Writing Before Asking the Hospital To Surrender Registration Certificate

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The Telangana High Court on 17.08.2020 set aside a show-cause notice issued to a corporate hospital for overcharging patients and asked the state government to follow the due procedure before taking any action. It was also said that the government has every right to ask an errant hospital on surplus charges.

Brief Facts 

Global is the third hospital after Deccan and Virinchi hospitals. These hospitals came under the radar of the health authorities. These hospitals were shortlisted for surplus billing and other charges. The Global hospital was overcharging Covid-19 patients. The Hyderabad DMHO issued a notice to the hospital. The authorities asked the hospital to surrender its hospital registration certificate immediately. Then the Global Hospitals moved to the Court for challenging the notice.

Submission of the Petitioner 

The senior counsel Dammalapati Srinivas appeared for the Global Hospitals. It is said that the respondent should not ask the hospital to surrender its registration certificate directly. Any hospital should be given a chance to explain its stand before asking it to do so. In the current case, this norm was violated.

Submission of the Respondent 

Advocate general BS Prasad appeared for the respondent. He assured the Court that the authorities would follow the due procedure. He also assured that the matter need not be stayed. However, the bench set aside the notice. The bench asked the government to start the process afresh in tune with the law. The authorities will start the process now.

The decision of the Court 

The bench consists of the Chief Justice Raghvendra Singh Chauhan and Justice B Vijaysen Reddy.

There was nothing wrong with asking the hospital to explain its position. Nevertheless, the DMHO or any other competent authority must give reasons in writing for their actions. Thereafter they can ask the hospital to surrender its registration certificate.


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