Karnataka govt pauses circular on medicine price disclosure by hospitals

Bengaluru: The state government on Friday told the High Court that it will not enforce a circular requiring hospitals to disclose procurement prices of medicines and medical devices in patient bills until further orders from the court.

The assurance came during the hearing of a petition challenging the October 1 circular, which requires hospitals and healthcare institutions to disclose the procurement price, maximum retail price (MRP) and the price charged to patients for medicines, medical devices and consumables in itemised bills from November 1.

Justice CM Poonacha recorded the government's submission that it would not insist on implementing the circular till the next hearing. Additional Advocate General BV Bhanuprakash told the court that officials were reviewing the circular and sought time to examine the matter. He urged the court not to pass an interim stay order, saying the objective was to make hospitals disclose the "landing" or base price of medicines.


The court noted the petitioners' concern that hospitals could face action for non-compliance from November 1. It then sought an assurance from the government, following which the state said it would not enforce the circular until the next hearing.

The Private Hospitals and Nursing Homes Association, Pristine Hospitals and Research Centre and a doctor have challenged the circular issued by the Commissioner of Food Safety and Drug Administration.

The petitioners argued that the circular lacks statutory backing and imposes disclosure obligations not envisaged under the law. They also contended that mandatory disclosure could reveal confidential commercial arrangements, and the government took the decision without adequate stakeholder consultation.

The court posted the case to November 12.

The move comes amid the state's push for greater transparency in private healthcare billing. Health Minister UT Khader has recently met private hospital representatives and raised concerns over excessive billing, while calling for greater transparency in treatment and medicine costs.