The Supreme Court has issued a stern warning to Indraprastha Apollo Hospital in Delhi, indicating that failure to provide mandated free treatment to economically disadvantaged patients could result in the hospital's management being transferred to the All India Institute of Medical Sciences . This directive comes amid allegations that the hospital has not adhered to its lease agreement, which requires offering free medical services to a specified percentage of poor patients.
A bench comprising Justices Surya Kant and N Kotiswar Singh expressed serious concerns regarding the hospital's compliance with its contractual obligations. The court emphasized the necessity of upholding commitments to serve underprivileged sections of society, especially when such obligations are integral to agreements involving public resources.
The court has mandated the central and Delhi governments to form a joint inspection team to scrutinize the hospital's records from the past five years. This team's objective is to determine whether the hospital has fulfilled its obligation to provide free treatment to 30% of its indoor patients and 40% of its outdoor patients, as stipulated in the 1994 lease agreement. The hospital management is required to fully cooperate with this inspection and provide all relevant documentation.
Indraprastha Apollo Hospital was established on a 15-acre plot in a prime area of Delhi, leased to the Apollo Group under a 30-year agreement at a nominal rate of ₹1 per month. This arrangement was based on the understanding that the hospital would operate on a 'no profit, no loss' basis, ensuring accessibility to quality healthcare for economically weaker sections. However, concerns have been raised that the hospital has deviated from this model, functioning instead as a commercial entity where treatment costs are prohibitive for poor patients.
The court has also sought clarification from the Delhi government regarding the current status of the hospital's lease, which was set to expire in 2023. Authorities have been asked to provide details on whether the lease has been renewed and, if not, what legal measures have been undertaken concerning the property.
Representatives for Indraprastha Medical Corporation Limited , which operates the hospital, have highlighted that the facility is a joint venture, with the Delhi government holding a 26% stake and benefiting from its revenues. Justice Surya Kant remarked that if the government is profiting from the hospital instead of ensuring care for poor patients, it is a matter of significant concern.
The Supreme Court's intervention follows a 2009 judgment by the Delhi High Court, which criticized the hospital for failing to meet its free treatment obligations. The High Court had issued directives to ensure compliance with the agreement, noting that the hospital had flouted these conditions with impunity.