Overall healthcare cost could increase post GST, Chairman Reddy
The Dollar Business Bureau
The cost of overall healthcare could rise after the implementation of Goods and Services Tax (GST) as some of the products and services will be levied with 15-18% tax, while healthcare has been exempted, said Apollo Hospitals Chairman Prathap C Reddy on Tuesday.
Reddy said that if there is a surge in the cost of healthcare by up to 2%, hospitals would be able to absorb the increase but any hike beyond that would have to be borne by the patients.
“There is no GST for us but there are services and some products with GST rate ranging from 15 to 18% that have fallen on us. So, after GST the cost increase for hospitals will be around 2% more,” he told the media.
“If the hike in cost is up to 2%, then hospitals can be able to absorb it but if it is 3-4% then it has to be passed on to patients,” Reddy said.
However, Reddy welcomed the move of the government to exempt healthcare from the GST, which is slated to be rolled out from July 1.
Earlier, Apollo Hospitals had said that the government has given due importance and impetus to the healthcare and education fields that they required to become game-changing agents in transforming India, its economy and people.
Reddy further said after the demonetisation, the company is back to normal and continues to grow.
Apollo has 9,215 beds across 64 hospitals. It has 2,500 pharmacies, more than 90 primary care and diagnostic clinics and over 110 telemedicine centres.