The Karnataka Food Safety and Drug Administration (FDA) has directed hospitals, pharmacies and medical suppliers across the state to disclose the actual procurement cost and Maximum Retail Price (MRP) of medicines, medical devices and consumables on patient bills. The new billing requirements will come into effect on November 1, 2026.
The directive, issued through a circular dated October 1, 2026, aims to improve transparency in healthcare billing amid concerns over substantial differences between the prices paid by hospitals and pharmacies to procure medical products and the amounts charged to patients.
Itemised Billing Made Mandatory
Under the new requirements, hospitals must provide detailed, itemised bills for all medicines, medical devices, implants and consumables supplied to patients.
Each bill must include the following information:
- Product name, including generic and brand names wherever applicable.
- Batch number, manufacturing date and expiry date.
- Actual procurement or landing price, excluding taxes.
- MRP printed on the product or the price notified by the National Pharmaceutical Pricing Authority (NPPA).
- Final price charged to the patient and applicable taxes not already included in the MRP.
The FDA has clarified that hospitals and other healthcare institutions cannot charge patients more than the printed MRP or the applicable ceiling price notified by the NPPA.
Hospitals Required to Inform Patients About Pricing
Healthcare facilities must display notices at admission desks, pharmacy counters and billing counters informing patients of their right to access procurement costs and MRP details.
Hospitals with websites have also been instructed to publish the relevant information online.
Additionally, institutions must preserve purchase invoices, procurement price records and billing details for at least three years to facilitate regulatory inspections.
Directive Covers Public and Private Healthcare Facilities
The order applies to government, private and trust-run hospitals, nursing homes, clinics, day-care centres and diagnostic facilities across Karnataka.
Both inpatient and outpatient services fall within its scope.
The requirements also extend to licensed carrying and forwarding agents, stockists, wholesalers, distributors and retailers operating in the state’s pharmaceutical and medical device supply chain.
Medical Device Industry Calls for Wider Price Transparency
The Association of Indian Medical Device Industry (AiMeD) has welcomed the initiative while emphasising the need for greater transparency throughout the medical product supply chain.
AiMeD Forum Coordinator Rajiv Nath said that disclosing hospital procurement costs and MRP would help identify margins at the final stage of supply. However, he stressed that effective monitoring of excessive mark-ups would require tracking transaction prices from manufacturers or importers through distributors and retailers to patients.
According to the association, capturing pricing information at every stage would help regulators identify the actual sources of price escalation and develop evidence-based corrective measures.
The Karnataka FDA’s directive introduces additional billing disclosure and recordkeeping requirements for healthcare providers and medical product suppliers, with implementation scheduled for November 1, 2026.