BENGALURU: Hospitals across Karnataka are expected to disclose the purchase prices and maximum retail prices (MRP) of medicines on patient bills from November 1, under a state government initiative aimed at improving transparency in medical billing and addressing concerns over rising healthcare costs.

Health and Family Welfare Minister U.T. Khader announced the proposed requirements in Bengaluru, saying patients should be able to understand the costs of medicines and medical supplies used during treatment. Hospitals have also been directed to display medicine price lists prominently in public areas, particularly near registration counters, so patients and visitors can access the information.

The move comes amid concerns about differences between the prices at which healthcare institutions procure medicines and the amounts patients are charged.

Hospitals asked to disclose medicine prices

Under the announced measures, hospitals will be required to mention the purchase price and MRP of medicines on patient bills. The pricing information is intended to help patients understand the costs associated with their treatment and identify discrepancies in billing.

The government has also called for medicine price lists to be displayed in accessible locations within hospitals, particularly around registration counters.

The broader objective is to make healthcare billing more transparent and enable patients to make informed decisions about their treatment expenses.

The proposed disclosure requirements follow concerns raised by state authorities about gaps between procurement costs and the prices charged to patients for medicines, medical devices and other healthcare supplies.

Khader raises concerns over rising treatment costs

Khader expressed concern about the increasing cost of healthcare and said prices had risen significantly following the entry of foreign investors into the sector, according to his observations.

He indicated that the government would discuss the issue and examine possible measures to address it.

The minister also clarified that the government did not intend to force private hospitals to charge the same rates as government hospitals. Instead, he said pricing could take into account the facilities available and the level of treatment provided.

His remarks suggest that the government is seeking greater transparency in billing while recognising differences in the services and infrastructure offered by healthcare institutions.

Penalties for violations yet to be decided

The state government has not yet finalised the penalties that may apply to hospitals that fail to comply with the announced directions.

Khader said the punishment for violations would be discussed. He also indicated that stricter rules and regulations would be necessary to address concerns about healthcare pricing.

The final enforcement framework, including the consequences of non-compliance, will be important in determining how the proposed requirements are implemented across the state.

Healthcare pricing directive faces questions

The proposed disclosure measures have also drawn objections from the Karnataka Pharma Retailers and Distributors Organisation, which has urged the state government to withdraw the circular.

The organisation has raised legal and operational concerns, arguing that medicine procurement costs can vary according to suppliers, purchase volumes and commercial agreements. It has also questioned whether the state directive can be extended to hospital pharmacies operating under licences governed by central legislation.

Separately, a report published by The Times of India on October 13 said the Karnataka Food Safety and Drugs Administration was preparing to withdraw its order following concerns about the regulatory framework and the role of the National Pharmaceutical Pricing Authority.

However, Khader’s announcement was reported again on October 23, with November 1 cited as the intended implementation date. The latest status of the circular therefore requires confirmation from the state authorities before the requirement is presented as definitively in force.