Menu

Keralam plans law to regulate private hospital treatment costs

Minister for Health Muraleedharan said that though private hospitals play an important role in the state's healthcare system, the government could not ignore situations where treatment bills became unaffordable for ordinary people.

Published Oct 01, 2026 | 7:07 PM ⚊ Updated Oct 01, 2026 | 7:07 PM

The proposed law seeks to protect patients while considering the operational costs and practical difficulties faced by private hospitals.
Make Us Your Preferred Source on Google

Synopsis: Health Minister K Muraleedharan said a four-member committee headed by the Principal Secretary, Health Department, would be constituted to prepare recommendations for the proposed legislation.

The government in Keralam is planning legislation to regulate treatment costs in private hospitals, with charges for medicines, diagnostic tests, room rent and medical procedures likely to come under regulatory scrutiny.

Health Minister K Muraleedharan said a four-member committee headed by the Principal Secretary, Health Department, would be constituted to prepare recommendations for the proposed legislation.

The Director of Health Services, the Director of Medical Education, and the Managing Director of Kerala Medical Services Corporation Ltd. (KMSCL) will be the other members.

The committee will consult private hospitals and other stakeholders before finalising its recommendations.

Also Read: When patented drugs become unaffordable, government can intervene

It will examine existing charges for medicines, laboratory tests, CT and MRI scans, other diagnostic services, room rent, and various medical procedures, as well as measures to improve quality of care, transparency, and patient safety.

The government also plans to examine a system under which private hospitals would have to inform patients about the expected cost of treatment before it begins and provide bills with charges clearly itemised.

Transparency in medicine pricing will be another key area.

Also Read: Kerala household’s hospital bill runs Rs 10,341 out-of-pocket compared to Rs 5,290 across India

The committee will examine a proposal to ensure that medicines supplied by private hospitals are sold below their MRP, and to make transparent the difference between the price at which hospitals procure medicines and the amount charged to patients.

The government will also consider the feasibility of bringing more private hospitals under government health insurance schemes.

Muraleedharan said that though private hospitals play an important role in the state’s healthcare system, the government could not ignore situations where treatment bills became unaffordable for ordinary people.

He said the proposed law would seek to protect patients while taking into account the operational costs and practical difficulties faced by private hospitals.

(Edited by Majnu Babu).

journalist-ad