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India Plans to Regulate Private Hospital Charges, Amend Clinical Establishments Act

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The Indian government is considering major changes to the Clinical Establishments Act, 2010, to regulate consultation fees and standardize charges for common medical procedures at private hospitals. The proposed amendments aim to bring greater transparency to healthcare billing and reduce the financial burden on patients.

Officials said the Centre is exploring range-based limits for doctors’ consultation fees depending on qualifications and experience, while also working on fixed pricing structures for common procedures such as cataract and caesarean surgeries. The health ministry is currently assessing treatment costs across different categories of cities before finalizing the framework.

The move is expected to impact more than 43,000 private healthcare facilities and nearly 1.38 million doctors across the country. It comes amid concerns over rising healthcare expenses, with households reportedly bearing nearly 47% of total medical costs in 2025. Data also shows hospitalization expenses in private hospitals have crossed ₹50,000 on average.

According to officials, the existing Clinical Establishments Act contains provisions allowing the Centre, in consultation with states, to determine a “range of rates” for medical services. However, the law currently lacks strong enforcement powers, prompting the government to consider legal amendments for stricter implementation.

The proposal has sparked opposition from parts of the medical fraternity. Indian Medical Association president Dr Dilip Bhanushali said the association opposes fee caps, arguing that doctors should not face restrictions that do not apply to professionals in other sectors. He added that while standardization of healthcare quality is important, controlling consultation charges may not be practical given the high costs of running private practices and hospitals.

Hospital industry representatives have called for a balanced approach. Dr Sanjay Sharma of Park Medi World Ltd said pricing transparency could improve patient trust and affordability, but stressed that differences in infrastructure, expertise, and technology across hospitals must be considered before implementing any standardization framework.

Meanwhile, Dr Aashish Chaudhry from Aakash Super-speciality Healthcare supported greater transparency in medical billing but warned against adopting a uniform pricing cap for all healthcare providers.

The proposed reforms are part of the government’s broader push to strengthen regulations in the private healthcare sector and make quality medical care more affordable and accessible for patients across India.

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