New Delhi: Patients could find it easier to understand hospital treatment costs as the Union Health Ministry has urged states and Union Territories to ensure that hospitals and clinics prominently display the rates of their services and facilities.
The initiative aims to help patients make informed healthcare decisions, estimate treatment expenses and avoid confusion or disputes over medical bills.
The Association of Indian Medical Device Industry (AiMeD) has welcomed the move, while calling for greater transparency in the pricing of medical devices and consumables used during treatment.
Health Ministry Asks States to Review Compliance
Union Health Secretary Punya Salila Srivastava has written to the chief secretaries of all states and Union Territories, urging them to review compliance with the applicable rules governing the display of healthcare service charges.
Under the Clinical Establishments (Registration and Regulation) Act, 2010, and the Clinical Establishments (Central Government) Rules, 2012, healthcare establishments in areas covered by the legislation are required to display the rates of services and facilities offered.
The ministry has stated that this information should be prominently displayed in both the local language and English so that patients and their attendants can access it easily.
States and Union Territories where the central legislation does not apply follow their respective regulatory frameworks. Several of these frameworks also contain provisions requiring healthcare establishments to disclose service charges.
The ministry has urged state authorities to ensure that the applicable requirements are implemented effectively.
AiMeD Seeks Disclosure of Medical Device Costs
Dr Rajiv Nath, forum coordinator of AiMeD, welcomed the ministry’s initiative, describing transparent hospital pricing as a step towards empowering patients and encouraging fair pricing.
However, he called for the disclosure requirements to extend beyond hospital service charges to include the prices of medical devices and consumables used during treatment.
According to Nath, patients should be able to understand the costs of these products and the margins applied throughout the supply chain, from the point of sale onwards.
AiMeD has also called for a uniform national framework for medical device price transparency and expressed its willingness to assist in developing such a framework.
Karnataka Moves to Disclose Landing Price and MRP
Nath also welcomed a circular issued by the Karnataka Food and Drug Administration (FDA) concerning the disclosure of medical product prices on hospital bills.
According to the report, the circular directs hospitals, healthcare institutions, distributors, wholesalers and retailers to disclose both the landing price and the maximum retail price (MRP) on hospital bills.
The landing price refers to the cost at which a product reaches a particular buyer or stage in the supply chain, while the MRP is the maximum retail price indicated for sale to consumers.
AiMeD believes that disclosing these figures could help patients better understand how medical devices and consumables contribute to their overall treatment expenses.
Foreign Patients Also in Focus
The Health Ministry has also encouraged states and Union Territories to promote the display of treatment package rates for foreign patients travelling to India on medical or AYUSH visas, wherever applicable.
Making package costs accessible could help international patients compare treatment options and understand the expected expenses before receiving healthcare services.
States Responsible for Implementation
The implementation and enforcement of clinical establishment regulations remain the responsibility of the respective states and Union Territories.
By asking chief secretaries to personally review compliance and issue necessary directions to the relevant authorities, the ministry has sought to strengthen the enforcement of existing requirements.
While the initiative focuses on making hospital service charges more accessible, AiMeD’s demands highlight a broader issue: ensuring that patients can also understand the pricing of medical equipment and consumables included in their bills.
If implemented effectively, greater price disclosure could improve billing transparency and help patients make more informed decisions about their healthcare expenses.
