Notification – NABH

Announcement to HCOs (Healthcare Organisations) from NABH – National Accreditation Board for Hospitals and Healthcare Providers

NABH has released this announcement calling healthcare organisations to take action immediately.

What the notification says :

The notification explicitly states the reason for this announcement in the very first paragraph:

“In view of recent concerns raised regarding discrepancies and misleading names of healthcare organizations, the National Accreditation Board for Hospitals & Healthcare Providers (NABH) would like to bring to the attention of all applicant Healthcare Organizations (HCOs) that the name of an HCO must accurately reflect the services provided within the facility.”

Announcement Key highlights :

Concern Regarding Misleading Names: The National Accreditation Board for Hospitals & Healthcare Providers (NABH) has noted concerns regarding discrepancies and misleading names of healthcare organizations (HCOs).

HCO Name Must Reflect Services: NABH wants to bring to the attention of all applicant Healthcare Organizations that the name of an HCO must accurately reflect the services provided within the facility.

Avoid Misleading Implications: In this regard, HCOs are advised to ensure that their name is not misleading in any form. The name should not imply the availability of services or specialties that are not offered within the facility premises.

Maintain Transparency, Trust, and Clarity: This is to maintain transparency, trust, and clarity for patients and the general public.

Clearly Communicate Nature of Services: The name of the HCO should clearly communicate the nature of services provided within the facility.

Support Specialized Claims: Names suggesting specialized or super-specialty care must be supported by actual, verifiable availability of those services.

Discourage Misrepresentation: Misrepresentation of services through the name of the facility is strictly discouraged and may lead to adverse decisions.

Match Application and Certificate Name: The name of the Healthcare Organization provided in the application form must match exactly with the name mentioned on the registration certificate.

Review and Modify Names: All HCOs are requested to review their current naming conventions and make modifications, if necessary, to comply with these guidelines.

Compliance is Required: All HCOs are expected to comply with these guidelines.

What must be the reason for this announcement ?

The primary reason quoted by NABH for releasing this announcement is to address recent concerns raised regarding discrepancies and misleading names of healthcare organizations. They aim to ensure that the names of HCOs accurately represent the services they provide, thereby preventing potential confusion and maintaining transparency for patients and the public

What could be the other possible reasons for this announcement ?

The MCA (Ministry of Corporate Affairs) has specific guidelines for using company names, including trade names, to prevent conflicts and ensure clarity in the business landscape. These guidelines emphasize the need for unique, legally permissible names, and avoid similarity with existing trademarks or companies. They also restrict the use of certain words and phrases. 

Mirror the Business Activity: The company name should ideally relate to the business activities that they’re conducting.

There are legal judgements on delivered related to Trade Name Disputes in the case of Hospitals .

Since any Certification or Accreditation is granted to any business for :

– the name of the business – not the Brand name but to the Legal Name of the business. Business name doesn’t not necessarily mean that the business is a Legal Entity.

– to the scope of services offered by a business entity. In the case of business registration, all businesses have to list out the activities, services offered by the business entity. Registration, approval is granted only for these services. Any other services offered by the business entity may not be recognised legally. In the case of Licensing too, Licensing Authorities grant Licensing, Recognition to specific services, activities to be carried out to the Establishment. Establishments cant’ OR not supposed to offer any other services , activities that are not licensed which means these are illegal too

So when a healthcare establishment offers services which are not related to its business name OR offers services, activities for which its Trade license is not issued is a serious issue.

Since NABH is issuing Certifications, Accreditations to healthcare facilities, many healthcare facilities offer variety of services which are not accredited or certified too thus causing confusion to patients and other users like Insurers etc

Announcement is in the right direction to protect to protect Patients, other payers from Misleading Claims, Campaigns etc

This is the time for HCOs to go back to their Finance and Compliance Teams and rework on issues related to Business Name and its related activities carried out in the business establishment. Reasons could be anything but business entities with legal identities have to meet business licensing, trade licensing norms listed out by MCA and also with State Licensing norms . Also its time to follow morally, ethically binding practices by creating Transparent Systems , Structures too.

Advisories like this from National Board should be respected and complied with when these are business essentials that are supposed to be complied with on a Voluntary basis by businesses.