Hospital Allowed to Continue BSKY Scheme Pending Fire Safety Certificate

Get the full picture - access the original judgement of the court order here

Case Name

Moon Hospitals Pvt. Ltd. & Anr. vs. The Commissioner-cum-Secretary, Health and Family Welfare Department, Bhubaneswar & Ors. (High Court of Orissa)

W.P.(C) No. 24050 of 2024

Date: 06th February 2025

Key Takeaways

• The court protected the hospital’s empanelment under the BSKY scheme while regulatory approvals are pending.
• The hospital must address all fire safety defects to get the renewed Fire Safety Certificate.
• The Health Department must allow the hospital to continue under BSKY until the Fire Safety Certificate is either granted or denied based on compliance.
• The case highlights the importance of regulatory compliance for hospitals, especially regarding fire safety.

Issue

Central Legal Question:

Should Moon Hospitals Pvt. Ltd. be allowed to continue its empanelment under the BSKY scheme while its application for a regularized building plan and Fire Safety Certificate is pending?

Facts

• Parties:
• Petitioners: Moon Hospitals Pvt. Ltd. (a private hospital in Cuttack) and another party.
• Opposite Parties: Commissioner-cum-Secretary, Health and Family Welfare Department, Cuttack Development Authority (CDA), Director of Fire Service, and others.
• Background:
• The hospital operates in a building originally approved for residential use, later converted for hospital use.
• The hospital applied to the CDA for regularization and conversion of the building plan from residential to commercial.
• The hospital also applied for a Fire Safety Certificate as required by the Odisha Fire Prevention and Fire Safety Rules, 2017 (amended 2019).
• The Fire Safety Certificate was previously granted but expired on 17.06.2024.
• The government issued a notification requiring all BSKY-empanelled hospitals to have a valid Fire Safety Certificate.
• The Fire Department’s inspection on 14.12.2024 found some shortfalls; the hospital claims to have rectified these.
• Problem:
• The hospital could not apply for renewal of its BSKY MoU because the building plan regularization was still pending.
• The hospital risked being de-empanelled from the BSKY scheme, affecting its ability to treat patients under the scheme.

Arguments

Petitioners (Hospital):

• The hospital has complied with all requirements and removed the fire safety defects.
• The delay in regularizing the building plan and renewing the Fire Safety Certificate is beyond their control.
• They should not be penalized by being removed from the BSKY scheme while these processes are pending.

State/Opposite Parties:

• The Fire Department found shortfalls in the fire safety inspection.
• If the hospital removes these shortfalls, there is no objection to issuing the Fire Safety Certificate.

Key Legal Precedents

Note:

The judgment does not explicitly cite any previous case law or specific statutory sections/rules by name, except for referencing the “Odisha Fire Prevention and Fire Safety Rules, 2017 (amended 2019)” as the governing regulation for fire safety compliance.

Judgement

• The court directed that if the hospital has removed all defects noted in the Fire Prevention and Safety Inspection Report dated 14.12.2024, the Fire Safety Department should promptly issue the Fire Safety Certificate.
• If defects remain, the certificate should not be issued.
• Meanwhile, the Health and Family Welfare Department must allow the hospital to continue its empanelment under the BSKY scheme until the Fire Safety Certificate is issued (or denied for non-compliance).
• The writ petition was disposed of with these directions.

FAQs

Q1: Can the hospital continue treating BSKY patients while waiting for the Fire Safety Certificate?

A: Yes, the court ordered that the hospital should remain empanelled under the BSKY scheme until the Fire Safety Certificate is issued, provided it has addressed all fire safety defects.

Q2: What happens if the hospital does not fix the fire safety defects?

A: If the hospital fails to cure the defects identified in the inspection report, the Fire Safety Certificate will not be issued, and the hospital may lose its BSKY empanelment.

Q3: Why was the hospital at risk of losing its BSKY empanelment?

A: Because the government required all empanelled hospitals to have a valid Fire Safety Certificate, and the hospital’s certificate had expired while its application for a regularized building plan was still pending.

Q4: What legal rule governs the fire safety requirements for hospitals in Odisha?

A: The Odisha Fire Prevention and Fire Safety Rules, 2017 (amended 2019).

Q5: Did the court cite any previous case law?

A: No, the judgment does not mention any specific previous case law by name.