Centre asks states to ensure hospitals prominently display prices

Union health secretary Punya Salila Srivastava has called for a comprehensive review of compliance with applicable statutory provisions.

New Delhi: The Centre has directed all states and Union territories (UTs) to mandate the prominent display of rates charged for services and facilities at clinical establishments, aiming to curb arbitrary pricing, minimize billing conflicts, and empower patients, the Union ministry of health and family welfare said in a statement on Monday.

In a formal communication addressed to the chief secretaries of all states and UTs, Union health secretary Punya Salila Srivastava called for a comprehensive review of compliance with applicable statutory provisions. The directive instructs local administrations to take prompt measures to ensure pricing information is clearly visible and easily accessible to patients and their attendants.

The initiative represents “a significant step towards strengthening transparency, accountability and patient-centric healthcare delivery” across hospital networks nationwide, the ministry said.

The Union health secretary noted in the statement that the conspicuous display of rates would “help patients and their families understand the likely cost of treatment, make informed healthcare decisions and plan their medical expenditure”.

The statement further highlighted that greater price transparency would “help minimize avoidable confusion and billing-related disputes, while fostering trust and confidence in the healthcare delivery system”.

Legal requirement

The Union health secretary’s communication invokes the statutory framework under the Clinical Establishments (Registration and Regulation) Act, 2010, and the Clinical Establishments (Central Government) Rules, 2012. Under these central rules, clinical establishments are legally required to display, in a conspicuous place, the rates charged for each service provided and the facilities available, published in both the local language and English.

For regions where the central Act is not adopted, healthcare facilities operate under state-specific legislative frameworks, several of which also contain explicit provisions mandating rate disclosures.

Recognizing that health is a state subject and that enforcement rests with local administrations, the Union health secretary urged chief secretaries to issue appropriate advisories to ensure that rates are exhibited at “conspicuous, clearly visible and easily accessible locations, in accordance with applicable regulations”.

Mint reported on 15 September on steep profit markups on medical consumables billed to patients by private hospitals, based on findings from the Maharashtra Food and Drug Administration (FDA) inquiry led by Tukaram Mundhe. Mint had previously reported on the government’s plans to enforce pricing transparency across clinical establishments on 14 May.

Encouraging transparency

The Centre has also expanded the transparency mandate to the medical value travel sector. States and UTs have been requested to encourage clinical establishments to prominently display package rates offered to foreign patients visiting India on Medical and Ayush Visas.

The statement stated that mandating clear package rates for overseas visitors would “enable international patients to make informed choices, help minimize pricing and billing-related grievances and further strengthen India's position as a trusted destination for medical and Ayush care”.

The Union government reiterated that access to upfront, clear information on healthcare charges must remain an integral part of patient-centric care.

About the Author

Priyanka Sharma is a journalist at Mint, where she covers the Union Ministry of Health and the pharmaceutical industry. Her work focuses on explaining government policies and how they impact healthcare and the medicine market in India. With 12 years of experience in journalism, she has built a reputation for providing clear and honest news on important health topics that affect the entire country.<br><br>Her educational background includes a journalism degree from the prestigious Indian Institute of Mass Communication (IIMC) and specialized training in public health from the Public Health Foundation of India. Before her current role at Mint, Priyanka worked with India Today, The Pioneer, and ANI. She also served as a lead consultant for the National Health Authority, which gave her firsthand knowledge of how the government manages large-scale health programmes.<br><br>Priyanka is based in New Delhi and is an avid traveller who loves visiting the mountains. She has a great interest in regional flavours, particularly South Indian food.