SUPREME COURT ORDER ON FREE COVID TESTING BY PRIVATE LABS

The Hon’ble Supreme Court, in its order dated 8th April, 2020 issued a direction, asking all private labs and hospitals who are accredited by the NABL and agencies or institutions suggested by the WHO and the ICMR, to conduct corona virus tests for free. 

A PIL was filed by the petitioner, Shashank Deo Sudhi, under article 32 of the Constitution, which provides for constitutional remedies. The petitioner stated, that while the government hospitals conduct the COVID-19 tests for free, the private hospitals on the other hand, charge an amount of Rs. 4500 per test, wherein Rs. 1500 is for conducting the screening test and the remaining amount is for confirmation test.

As a result, the petitioner requested the Hon’ble court in his plea, to issue an order directing all private hospitals and testing agencies, which are duly accredited by the NABL or suggested by the WHO or ICMR, to conduct these tests for free.

The Supreme Court, favouring the plea of the petitioner, in light of the increasing number of COVID-19 cases and the rapidly rising casualties, issued an order with this regard and have directed all private hospitals and testing labs to conduct the COVID-19 test for free, given they are duly accredited by the NABL and given approval by the ICMR.

However, as far as the financial aspects of these private labs are concerned, the court has not provided any remedy to these private institutions and the question of reimbursement of the amount spent by these agencies by the government has been left unanswered. 

While the decision given by the Supreme Court is in line with the current circumstances, and has been taken in respect of public health and morality, yet the ambiguity of non-reimbursement by the court, leads these private hospitals at a loss. This is because, the amount of money spent on each of these COVID-19 tests is huge, and if to be done for free, such hospitals and labs will not be left with any other way to re-compensate for the amount lost, given the kind of economic scenario the Indian market is in. 

While the free testing can be considered by the government as part of the CSR activities of these private hospitals and labs, in line with the recent amendment of the Ministry of Corporate Affairs, yet a finality to this decision can be provided only when the government gives its response to the petition.