Hospitals Face 950+ Compliance Challenges Annually, Report Reveals

TeamLease Regtech, a provider of Regulatory Technology (Regtech) solutions, unveiled a comprehensive report titled ‘Simplifying Compliance Management for Hospitals.’ 

The company in a press statement on Tuesday informed that the report sheds light on the intricate compliance challenges faced by hospitals across India, analysing the current regulatory framework and offering actionable recommendations to address these issues.

According to the report, a typical 50-bed hospital with various facilities such as a diagnostic center, radiology, pathology lab, and pharmacy, needs to navigate 623 unique compliance requirements. These include 421 at the union level, 192 at the state level, and 10 at the municipal level. When accounting for the frequency of these requirements, the total annual compliance obligations surge to 967. Additionally, hospitals must secure 100 licenses, permissions, and approvals under 58 different acts.

Rishi Agrawal, CEO of TeamLease RegTech, emphasised the critical role of the healthcare sector, noting, “With over a billion consultations annually and a growing demand for healthcare professionals, the sector faces significant growth challenges. Despite its importance, the complexities of compliance are stifling progress. Our report highlights that even a small hospital manages nearly 967 compliance instances each year, involving 53 types of licenses and registrations. To streamline these processes, digital compliance solutions are essential.”

The report details several key regulatory obligations for hospitals, including adherence to the Narcotic Drugs and Psychotropic Substances Act of 1985, and the Pharmacy Act of 1948. Hospitals must maintain detailed records of drug usage, patient records for five years, and documentation of drug administration. The Pre-Conception and Pre-Natal Diagnostic Techniques (Prohibition of Sex Selection) Act, 1994, also requires hospitals to preserve the names of individuals receiving genetic counselling for two years.

Key findings indicate that labour compliances constitute approximately 31 per cent of the total obligations, while industry-specific requirements account for over 27 per cent. The report highlights the exponential increase in compliance obligations as hospitals expand their operations and geographical reach. Managing these obligations using traditional methods, such as spreadsheets, is often cumbersome and prone to errors.

To address these challenges, the report advocates for compliance reforms and the adoption of advanced digital solutions to enhance the efficiency of compliance management.