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Kerala Moves Towards Regulation of Private Hospital Treatment Charges

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The Kerala government is preparing to introduce legislation aimed at making private healthcare costs more transparent and affordable for patients.

Health Minister K. Muraleedharan announced that a four-member committee will be formed under the leadership of the Principal Secretary of the Health Department to prepare a draft bill for consideration by the state Assembly.

The committee will include the Health Department Director, Director of Medical Education and Managing Director of the Kerala Medical Services Corporation Ltd (KMSCL). It will hold discussions with private hospitals and other stakeholders before submitting its recommendations.

The proposed legislation will examine charges for medicines, diagnostic tests, CT and MRI scans, room accommodation, medical procedures and other hospital services. One of the key objectives will be to ensure that patients receive information about the estimated cost of treatment before it begins.

The government also plans to promote greater transparency in hospital billing, with bills expected to provide a clear break-up of individual charges. The pricing of medicines supplied by private hospitals will also come under review, including the difference between hospitals’ purchase prices and the amounts charged to patients.

According to the minister, the proposed framework may also require medicines provided by private hospitals to be sold below their maximum retail price (MRP).

The government is further examining the possibility of bringing more private hospitals under government health insurance schemes, which could expand access to affordable treatment.

While recognising the important role played by private hospitals in Kerala’s healthcare system, the government said the proposed measures would seek to balance patients’ interests with the operational costs and practical challenges faced by hospitals.

The draft legislation is expected to focus on affordability, transparent billing, patient safety and quality healthcare, with the committee’s recommendations forming the basis for further action.

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