India’s health sector has a welcome update: the government has lifted the prices for almost 2,000 medical procedures under the Central Govt Health Scheme (CGHS). The new rates were announced on October 3 and will start on October 13, giving patients and hospitals a clearer, fairer payment model.
The move follows a long‑awaited call from the Association of Healthcare Providers of India (AHPI) and a 2024 revision that had only minor tweaks. For more than ten years, hospitals struggled to cover real costs while CGHS beneficiaries paid the same fixed amount. “This reform, along with earlier GST relief, shows the government’s commitment to stronger health delivery,” said Ameera Shah, president of NATHEALTH. “It will improve access to safe care and boost system efficiency.”
What the new pricing looks like
- All CGHS cardholders – The change covers every beneficiary, from major hospitals to small clinics.
- Room types – Semi‑private rooms (2–4 beds) and general wards (up to 10 beds) set new base rates.
- City tiers – Prices drop by 19 % in tier‑II cities such as Chandigarh, Jalandhar, and Ludhiana, and by 20 % in tier‑III cities.
- Accreditation – Non‑NABH hospitals see a 15 % rate reduction versus NABH‑accredited ones, while super‑speciality hospitals with 200+ beds earn 15 % more than NABH hospitals.
These adjustments are designed to match the true cost of care and to ease the financial gap that hospitals and patients have faced for a decade.
Looking ahead
NATHEALTH wants the CGHS and other government schemes to be regularly checked against the Consumer Price Index (CPI). “Benchmarking to the CPI will keep pricing predictable, sustainable, and fair for patients, providers, and policymakers,” Shah said.
Overall, the updated package rates should benefit millions of CGHS users, streamline hospital operations, and signal that India’s healthcare policy is listening to the needs of both doctors and patients.
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