Government Announces 3% Health Equity Fee on Treatments at Private Hospitals

The government has announced the imposition of a three percent health equity fee on health services provided by private hospitals in the upcoming fiscal year’s budget. Health sector experts have commented that charging additional fees to patients at private hospitals without adequately strengthening the public health system is not practical. Private hospital operators have expressed dissatisfaction, stating that the government’s decision attempts to use hospitals as tax collection agents. (May 31, Kathmandu)

Dozens of patients visiting emergency rooms in government hospitals across the country are compelled to turn to private hospitals. The primary reasons include a lack of beds in emergency wards, long waits, and cumbersome services. These patients, seeking affordable and quality care to save lives immediately, often go to private hospitals. However, the government has announced additional charges on citizens forced to seek treatment privately. As stated in the budget presented by Finance Minister Dr. Swarnim Wagle: “To assist in developing and extending education and health infrastructure in remote areas, a minimum rate of equity fee will be levied on education and health services provided by the private sector.”

The bill prepared to implement this financial proposal specifies in Section 17 that a health equity fee at a rate of three percent will be charged on all service fees collected from patients by individuals operating health services in the private sector. This fee is purportedly intended to be spent on improving access to quality health services and the development of health infrastructure. Consequently, an additional 3% charge will be applied to treatment costs at private hospitals.

Experts have highlighted that it is unjust to compel citizens to pay extra taxes when public hospitals lack basic facilities such as specialized doctors, laboratory services, X-rays, and ultrasounds. Madhav Timilsina, Chair of the Consumer Rights Research Forum, said that health services fall within citizens’ fundamental rights and categorizing them under tax is a mistaken practice. While there is agreement on ensuring equal access to health services and strengthening public health institutions, doctors and experts have stated that the chosen taxation method is inappropriate for achieving these goals.