States » SouthPosted at: Oct 2 2026 8:06AM


Kerala plans law to regulate treatment costs in private hospitals

Thiruvananthapuram, Oct 2 (UNI) Kerala Government is set to bring in legislation to regulate treatment costs in private hospitals and ensure greater transparency in billing, particularly to prevent patients from being burdened with excessive medical expenses.
The proposed legislation will cover charges for medicines, diagnostic tests, room rent and various medical procedures, besides prescribing measures to ensure that patients are informed in advance about the expected cost of treatment.
A four-member committee will be constituted to prepare the draft Bill to be presented before the Legislative Assembly, Health and Devaswom Minister K Muraleedharan said.
The committee, headed by the Principal Secretary, Health Department, will have the Director of Health Services, Director of Medical Education and Managing Director of the Kerala Medical Services Corporation Limited (KMSCL) as members.
The committee will hold consultations with private hospitals and other stakeholders and recommend measures to reduce treatment costs while improving the quality of healthcare, transparency, patient safety and availability of services.
The committee will undertake a detailed examination of treatment costs in private hospitals, including prices of medicines, charges for laboratory and other diagnostic tests, room rent and rates for various procedures and interventions.
The government also proposes to examine mechanisms to ensure that medicines supplied to patients by private hospitals are available at prices below the Maximum Retail Price (MRP). The system of medicine procurement by hospitals and the prices charged to patients will also be examined to ensure greater transparency.
Charges for laboratory investigations, CT and MRI scans and other diagnostic services, as well as room rent and procedure charges, will come under the committee's scrutiny.
The possibility of extending government health insurance schemes to more private hospitals will also be assessed as part of the exercise.
Private hospitals have a significant role in Kerala's healthcare sector, but some institutions have been charging exorbitant amounts from patients, particularly those from economically weaker sections, the Minister said.
Several people approach the authorities seeking assistance after receiving unaffordable bills from private hospitals, he said, adding that excessive commercialisation of healthcare could not be accepted.
The proposed system would require private hospitals to inform patients about the expected expenditure before commencing treatment and clearly specify the charge for each item in the final bill.
The government recognised the contribution of private hospitals and their operational expenses, but wanted to prevent a situation in which treatment became unaffordable for ordinary people, Mr Muraleedharan said.
The proposed regulations would therefore seek to balance the operational and practical difficulties faced by private hospitals with the need to protect patients' interests and ensure affordable, transparent and quality healthcare, he added.
UNI DS
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