Kerala has begun preparing legislation to regulate private hospital costs, covering medicines, diagnostic services, procedures and room accommodation, after the state government received complaints about high treatment charges and shortcomings in patient care.
A committee headed by the principal secretary for health has been formed to examine the issue and submit a comprehensive report with specific recommendations. Its members include the director of medical education, the director of health services and the managing director of the Kerala Medical Services Corporation Ltd (KMSCL).
The committee’s recommendations will form the basis of the proposed bill, which the government plans to introduce in the state assembly. The panel will examine whether private hospitals can procure medicines through KMSCL and whether such a system could reduce procurement costs and treatment expenses for patients.
Health minister K Muraleedharan said the government had received several complaints about high charges in private hospitals, along with allegations concerning deficiencies and errors in treatment and patient care. He also acknowledged the role of private hospitals in providing specialised and advanced medical services, but said measures were needed to make such treatment more affordable and accessible.
The proposed review will include medicine pricing and procurement practices. The government plans to hold consultations with private hospitals and other stakeholders on the possibility of supplying medicines to patients at prices below the maximum retail price wherever feasible. Greater transparency in medicine pricing will also be considered.
Laboratory tests, imaging and other diagnostic services will be examined as part of the process. The government also plans to review room rents and accommodation charges, with particular attention to ordinary and general wards, which are commonly used by patients who cannot afford higher-cost facilities.
The framework is expected to cover access to government-sponsored health insurance schemes as well. The government is considering expanding these schemes to more private hospitals so that beneficiaries can obtain specialised treatment without bearing the entire cost themselves.
The committee will also examine complaints relating to treatment deficiencies, medical errors and other shortcomings in private hospitals. Its recommendations are expected to address quality of care, patient safety and accountability in addition to pricing.
The proposed legislation would therefore cover both the financial and clinical dimensions of private healthcare. For patients and families, the immediate issue is not only the headline cost of treatment but also the limited transparency around medicines, diagnostics, procedures and room charges that can make hospital bills difficult to assess before care begins.
The government has not yet finalised the bill or announced a timeline for its introduction. The next formal step is the committee’s review and consultations with private hospitals and other stakeholders before recommendations are prepared for consideration by the state government.