The Center is asking states to ensure that hospitals prominently display the prices

New Delhi: The Center has directed all states and Union Territories (UTs) to mandate prominent display of rates charged for services and facilities in clinical facilities to curb arbitrary pricing, minimize billing conflicts and empower patients, the Union Ministry of Health and Family Welfare said on Monday.

In a formal communication addressed to the chief secretaries of all states and UTs, Union Health Minister Punya Salila Srivastava has called for a comprehensive check on compliance with applicable statutory provisions. The directive directs local authorities to take immediate action to ensure that price information is clearly visible and easily accessible to patients and their carers.

The initiative represents a “significant step to strengthen transparency, accountability and patient-centered healthcare delivery” across hospital networks across the country, the ministry said.

In a statement, the Union Health Minister noted that the prominent display of rates “will help patients and their families understand the likely cost of treatment, make informed healthcare decisions and plan their medical expenses”.

The statement further emphasized that greater price transparency would “help minimize avoidable billing confusion and disputes, while promoting confidence in the health care delivery system.”

Legal requirement

The Union Health Minister’s notification refers to the legal framework under the Clinical Facilities (Registration and Regulation) Act, 2010 and the Clinical Facilities (Central Government) Rules, 2012. Under these central rules, clinical facilities are legally required to display in a prominent place the rates charged for each service provided and facilities available in the local language.

In regions where no central law has been enacted, health facilities operate under state legislative frameworks, some of which include express provisions mandating the publication of rates.

Acknowledging that health is a state matter and that enforcement rests with local governments, the Union Health Minister asked the Chief Secretaries to issue suitable recommendations to ensure that the prices are displayed at “conspicuous, clearly visible and easily accessible places in accordance with applicable regulations”.

Mint reported on September 15 about the steep markups on medical consumables charged to patients by private hospitals based on findings from a Food and Drug Administration (FDA) investigation in Maharashtra led by Tukaram Mundh. Mint had previously reported on the government’s plans to enforce price transparency across clinical facilities on May 14.

Promoting transparency

The Center has also extended the transparency mandate to the medical value travel sector. States and UTs have been asked to encourage clinical facilities to prominently display package prices offered to foreign patients visiting India on medical and Ayush visas.

The statement said setting clear package rates for foreign visitors “will enable international patients to make informed decisions, help minimize complaints related to pricing and billing, and further strengthen India’s position as a trusted destination for medical and Ayush care”.

The Union Government has reiterated that access to upfront clear information on healthcare charges must remain an integral part of patient-centred care.