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New Delhi: The Delhi government on Friday cancelled the licence of Max Hospital, Shalimar Bagh, here with immediate effect, more than a week after the hospital erroneously declared a newborn dead.

In the cancellation order, which comes after a three-member panel had submitted a report to Delhi Health Minister Satyendar Jain, the government has stopped the hospital from admitting any more new patients and put a stop to all outpatient treatment services and laboratory testing on the premises with immediate effect.

"The registration of Max Superspeciality Hospital, Shalimar Bagh, stands cancelled, till further orders...," said the cancellation order.

According to the government, indoor patients already admitted in the hospital shall be given a choice by the hospital to continue treatment there or be transferred or shifted to another hospital of their choice.

The announcement on cancellation was made by Delhi Health Minister Jain.

The Minister said a final report on an inquiry ordered by the government was submitted to them on Friday and the decision was taken after that.

Jain said last month they had issued notice to Max Hospital Shalimar Bagh for problems in the treatment of patients under EWS (Economically Weaker Sections) category.

Also, the hospital had continued to use extra beds allotted to them for a particular time even after the deadline ended, the Minister said.

The baby boy -- 22-week premature - was declared dead by Max Hospital on November 30 and handed over to the parents in a plastic bag, along with its still-born sister. However, the baby started moving while being taken for burial. The baby was then admitted in North Delhi's Agarwal nursing home, but died on Wednesday.

The Indian Medical Association (IMA) termed the cancellation of licence "too harsh a step". It backed the hospital and said if all hospitals start facing such situations where patients die due to such mistakes then healthcare will come to a halt.

"We are not backing the mistake committed by Max Superspeciality hospital. However, the cancellation of licence is too harsh a step. Action should be initiated against those who are at fault after proper inquiry by the Delhi Medical Council," IMA President K.K. Agarwal told the media here.

Stating that mistakes occur even at premier government hospitals such as AIIMS and Safdarjung, Agarwal said that if government starts cancelling the licences of hospital in such a manner then all healthcare facilities will have to be shut down.

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