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Hospitals in India are burdened with an overwhelming number of compliance requirements, with a new report highlighting that they face over 950 compliance issues every year. The report, released by TeamLease Regtech, a regulatory technology solutions company, sheds light on the extensive regulatory complexities that Indian hospitals must navigate, potentially hindering their growth and efficiency.
According to the report, a standard 50-bed hospital with a diagnostic center, radiology department, pathology lab, and pharmacy, all operating under a single corporate office in one state, must adhere to 623 unique compliance requirements. These obligations span across various regulatory levels: 67.5% of these are mandated at the union level, 31% at the state level, and 1.5% at the municipal level.
The report highlights the intricate nature of these requirements, which include at least 53 different types of licenses, permissions, and registrations. Rishi Agrawal, CEO of TeamLease RegTech, emphasized the critical role of the healthcare sector in India, noting that the country performs over a billion consultations annually and employs approximately 8 million healthcare professionals. However, the sector’s growth is being stymied by the sheer volume and complexity of compliance requirements.
“The healthcare sector is vital to our daily lives, yet it is hampered by an overwhelming number of compliance issues,” said Agrawal. “Even a small hospital must manage at least 967 instances of compliance every year. Without proper processes in place, senior management is often left to deal with the fallout from ad-hoc and manual compliance operations.”
Agrawal stressed the importance of digital solutions in streamlining compliance operations, calling it “the need of the hour.” The report also revealed that hospitals are required to obtain around 100 licenses across union, state, municipal, and local levels, with labor compliances accounting for about 31% of these obligations and industry-specific regulations making up more than 27%.
As India’s population ages, with projections indicating that 158 million people, or 15% of the population, will be over the age of 65 by 2035, the demand for healthcare services is expected to surge. However, the report warns that the current regulatory environment could pose significant challenges to the sector’s ability to meet this growing demand.
The findings underscore the urgent need for regulatory reform and the adoption of digital compliance solutions to ensure that hospitals can focus on delivering quality care rather than being bogged down by bureaucratic hurdles.
