New 3% Health Equity Fee Imposed on Private Healthcare Services in Nepal

Kathmandu. Starting today, patients will have to pay an additional 3 percent 'Health Equity Fee' when receiving treatment services in private hospitals, nursing homes, polyclinics, labs, and private medical colleges.

The new system has come into effect today after the government implemented a 3 percent health equity fee on all types of service charges levied by privately operated health institutions through the Economic Bill 2083.

According to the new system, private health institutions will have to add a health equity fee at a rate of 3 percent on all service charges collected from patients. For example, if the treatment costs ten thousand rupees, an additional 300 rupees will have to be paid as a health equity fee.

According to the government, the amount collected from this will be spent on expanding access to quality health services and building health-related infrastructure. A system has been put in place for private health institutions to collect the fee through bills and submit it to the concerned Inland Revenue Office within 25 days of the end of each quadrennial.

If the fee is not paid or is found to be evaded, the tax officer can determine the fee. If the amount is not submitted within the stipulated time, an annual interest of 15 percent will be levied, and if the submission of the details is delayed, a fine of one thousand rupees per submission will be imposed, and if evasion of the fee is confirmed, an additional 25 percent fine will be levied as per legal provisions.

Consumer rights activists and private hospital operators have expressed dissatisfaction with the government's decision. They have stated that this will increase the cost of treatment and the direct burden will fall on the patients.

Dr. Padam Khadka, Chairman of the Association of Private Health Institutions of Nepal (APHIN), the umbrella organization of private hospitals, stated that the health equity fee of 3 percent will be collected from patients and submitted to the government as per the system set by the government. According to him, hospitals are only a medium for collecting the fee, and the additional financial burden will have to be borne by the patients themselves.