Karnataka asks hospitals to reveal medicine purchase prices, display procedure costs

From November 1, patients at hospitals across Karnataka will be able to see what hospitals paid for medicines as well as their maximum retail prices, under new billing requirements announced by the state government.

Karnataka health and family welfare minister U T Khader said in Bengaluru that hospitals in the state will have to record both figures on patient bills and use the disclosed prices while charging for medicines. Medicine price lists will also have to be displayed in prominent public areas, particularly near registration counters.

The measures are intended to give patients a clearer account of medicine costs and bring greater transparency to hospital billing.

The government is also considering greater disclosure of procedure costs. Hospitals could display prices for major medical procedures on notice boards, while charges for other procedures could be maintained in a ledger that patients could consult when required, Khader said.

The proposed rules will not require private hospitals to adopt the rates charged at government facilities. Instead, Khader said private hospital charges could vary depending on the amenities and level of treatment provided.

“We are not expecting the pricing at private hospitals to be on par with the price set at government hospitals, but the rates could be fixed based on the amenities provided and the level of treatment at the hospital,” he said.

The government’s proposed changes will therefore cover not only the disclosure of medicine purchase prices and MRPs on bills, but also the public display of medicine prices and, potentially, procedure charges.

No punishment for violation yet

The state has yet to decide what action hospitals could face for failing to comply with the new requirements. The Health Department plans to meet private hospitals shortly to discuss and finalise the terms and conditions.

“The punishment for violating the rules would be discussed,” U T Khader said.

He said the government did not want regulations to make healthcare businesses financially unviable, while arguing that tighter rules were necessary. “We do not intend to push the healthcare business into loss, but some stringent rules and regulations will have to be put in place,” he said.

Minister blames foreign investment for rising healthcare costs

Khader said the government was concerned about the rise in healthcare costs and, in his view, linked part of the increase to the entry of foreign investors into the healthcare sector.

“According to my observation, after foreign investors have entered the healthcare market, the prices have gone up tremendously. We will discuss and see what best can be done,” he said.