Smita Paliwal on Courts’ Stand: Free vs. Paid Healthcare Under Consumer Protection Act

In an article published by Business Standard on the complexities of medical negligence litigation, Smita Paliwal, Partner at KSK, highlighted an important clarification made by the courts on the scope of the Consumer Protection Act in healthcare.

Smita Paliwal stated:
 “Courts have clarified that patients receiving free care in hospitals that also offer paid services are treated as consumers. However, hospitals providing only free treatments may fall outside the Act’s scope, unless payments or cross-subsidies are involved.”

This distinction is critical in shaping the rights of patients and the liabilities of hospitals. While hospitals with a mix of paid and free services are accountable under consumer law, institutions offering only free treatment may not fall under its purview unless financial cross-subsidies are at play.

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