Rahul Mehta Gandhinagar LsCandidate

The issue of hospitals charging MRP and not the actual price of the medcine
.
Say a hospital get medicine for say Rs 100. Say MRP is Rs 1000
.
Now hospital has two choices
.
1) hospital can say -
medicine price = Rs 100
hospital fees = Rs 900
Total = Rs 1000, plus applicable taxes
,
2) hospital can say
medicine price = Rs 800 (a lie, because hosiptal got for Rs 100)
hospital fees = Rs 200
Total = Rs 1000, plus taxes
.
In first case, hospital is honest. But service tax it will have to pay is 15% of administration charges will be Rs 135 . So total bill on patient will be Rs 1135
.
In second case, hospital is speaking lie. But service tax will be Rs 30. and so total charge on on patient will be Rs 1030
.
Thats why hospitals show higher medicine price and lesser service change. Because there is service tax on hospital fees
.
SOLUTION?
.
Remove service tax, impose wealth tax minus income tax paid minus credits minus 15% of salaries paid to staff. Now hospitals may get credits from patients and hospitals generally pay good salary to staff. So effective WT on hospitals will be low or even zero. But wealth tax on those who have empty prime location plots will be huge. This will force them to rent / sell prime land, and so land prices will reduce, and so price of ALL things including hospital fees will fall.
.
And the solution to high medical costs is to improve medicine education --- Right to recall health Minister , and improve medicine in govt hospitals.
.
Now , you all may note that paidjournalists etc who "expose" hospitals insist on silence on land price issue. Why?Well, see how much land paid-ToI's owners own.