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Keralam Government Introduces Legislation to Regulate Private Hospital Treatment Costs, ETHealthworld

Thiruvananthapuram: The Keralam government is planning to bring in a legislation to regulate treatment costs in private hospitals, Health Minister K Muraleedharan said on Thursday.

The government will constitute a four-member committee headed by the Health Department Principal Secretary to prepare a draft bill for consideration by the state Assembly, he said.

The committee will comprise the Health Department Director, Director of Medical Education and Managing Director of the Kerala Medical Services Corporation Ltd (KMSCL), besides the Principal Secretary as its chairman, he said in a statement.

The panel will consult private hospitals and other stakeholders and make recommendations to reduce treatment costs and improve the quality and transparency of healthcare, patient safety and availability of services, according to the minister.

It will examine treatment costs in private hospitals, including prices of medicines, diagnostic tests, room rent and charges for various procedures and interventions, he said.

“Some hospitals are excessively exploiting poor people,” Muraleedharan said, adding that several people approach the government seeking assistance after receiving unaffordable bills from private hospitals.

Such “excessive commercialisation” of healthcare cannot be accepted, he said.

The proposed measures will seek to ensure that patients are informed of the expected cost of treatment before it begins and that bills clearly specify the charges for each item, the minister said.

The government will also examine mechanisms to ensure transparency in the purchase price of medicines by hospitals and the price charged to patients.

Medicines supplied to patients by private hospitals should be available at prices below the maximum retail price (MRP), he said.

The committee will also examine regulation of charges for laboratory tests, CT and MRI scans, other diagnostic services, room rent and medical procedures.

It will assess the possibility of expanding government health insurance schemes to more private hospitals, Muraleedharan said.

While acknowledging the significant contribution of private hospitals to the state’s healthcare sector, the government wants to ensure that treatment does not become unaffordable for ordinary people, he said.

The proposed regulatory mechanism would take into account the operating costs and practical difficulties faced by private hospitals while protecting the interests of patients, the minister added.

  • Published On Oct 2, 2026 at 07:41 AM IST

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