Karnataka plans hospital rate cards to improve billing transparency (Img: X)
Bengaluru: The Karnataka government is considering a policy to bring greater transparency to private hospital bills and medicine prices amid concerns over varying charges for identical medical procedures. The proposed measures aim to make healthcare costs more predictable and reduce the financial burden on patients.
Health Minister UT Khader held a meeting with representatives of private hospitals at Arogya Soudha on Thursday to discuss standardising treatment charges, improving billing practices and protecting patients from excessive expenses.
Khader called for a standardised rate card for medical procedures and asked hospitals to display a directory of treatment charges at their reception desks so patients and their families can understand the likely costs before undergoing treatment.
“Treatment charges should be uniform, and a standardised rate card should be introduced so that patients are not burdened with excessive medical expenses,” the minister said.
Private hospital representatives, however, raised concerns about applying identical rates across establishments, arguing that infrastructure, facilities and service standards differ between corporate hospitals and other healthcare providers.
The government has also asked private hospitals to disclose the procurement costs of medicines and the prices charged to patients. Hospital representatives called for discussions with pharmaceutical manufacturers, alleging that intermediaries earn substantial commissions and that procurement prices are often linked to the maximum retail price (MRP).
The meeting also addressed concerns over unauthorised MRP increases and the high cost of life-saving medicines used to treat cancer, heart and kidney diseases. Further consultations with manufacturers and distributors are planned to explore ways to make essential medicines more affordable.
Private hospitals sought six months to implement the proposed measures. Khader indicated that a blanket extension could not be granted and that implementation timelines would be linked to software updates.
The Health Department is examining a policy to regulate private hospital charges and improve billing transparency. Excessive billing will be discussed further with departmental officials before the government takes a final decision.
The government also plans to frame clear rules to prevent hospitals from withholding the bodies of deceased patients over unpaid medical bills.
A separate meeting with insurance companies is planned to address complaints about additional charges imposed on policyholders and to simplify the health insurance claims process.
Private hospital representatives also raised issues involving the Fire and Emergency Services Department, the Karnataka State Pollution Control Board and the Karnataka Private Medical Establishments (KPME) Act. The government said these concerns had been discussed and steps would be taken to address them.
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The proposed policy has not yet been finalised. Its scope, the extent of standardisation and the implementation schedule remain under consideration, particularly given differences in hospital infrastructure and services.
Khader said the government was committed to improving transparency in healthcare, curbing excessive medical expenses and protecting patients from financial hardship.
