Synopsis: Within three weeks of the date of the judgement, the Court ordered the state government to consider the objections posed by the private laboratories and diagnostic centres and to take a decision thereafter.
A November 2020 Order of the Government of Kerala reducing the price of several Covid-19 tests, including RT-PCR, has effectively stayed by the Kerala High Court. In particular, the price for the RTPCR test was slashed to Rs. 1500 from Rs. 2100.
The direction was given by the Bench of Justice PV Asha after the High Court was moved by various private laboratories and diagnostic centres.
In finding that the State had not taken their grievances into consideration, the Court ordered the State government, within three weeks of the date of the judgement, to consider the objections raised by private laboratories and diagnostic centres and to take a decision thereafter.
The petitioners argued during the hearing that the reduction of the maximum charges for the tests was unreasonable and was fixed without authority. The petitioner’s diagnostic society argued that they incurred more expenditure than the government’s costs revealed in conducting the tests and also alleged that premium customers who visited private laboratories could afford to make the payments.
The petitioners also stated that the expenses incurred by private laboratories could not be compared with those under the government because private laboratories had to build separate facilities and engage highly qualified personnel to perform these tests.
In addition, the petitioners, through their counsel Paul Jacob, relying on a Supreme Court order, stated that private laboratories will continue to charge for Covid-19 tests along the lines of the costs prescribed by the Indian Council for Medical Research (ICMR).
Additional Advocate General Ranjth Thampan, on the other hand, asserted that it was within the authority of the State to set rates for Covid-19 testing, referring to a letter from the Department of Health and Family Welfare Secretaries and that of the Government of India Department of Health Research and Director General of ICMR.
After a meticulous market analysis of the costs of reagents, test kits and prices in other States, the new rates were gradually reduced.
The State further claimed that common man is benefited as a result of the price reduction and more persons approached private laboratories for COVID-19 tests, despite the same being carried out free of charge by the government.
Instead, refraining from deciding the arguments of the petitioner in respect to the authority of the State government and the ICMR to fix the price of COVID-19 tests, Justice Asha observed that the grievances of the petitioners did not seem to have been considered by the State government regarding the decision to slash prices.
The Court therefore considered it appropriate, to direct a reconsideration of the matter, within three weeks after hearing the petitioners’ grievances.
The price for the RTPCR test was initially Rs. 4,750, as stated in the Order. Later, in November, the price was reduced to Rs. 2,750, then Rs. 2,100 and ultimately to Rs. 1,500.
Pending the government’s reconsideration, the labs have now been directed to charge Rs. 2,100 for the RTPCR.