Karnataka to draft policy against hospitals detaining bodies for unpaid bills

Health and Family Welfare Minister UT Khader at ‘Aalisu Kanda’, a symposium on Pediatric Cochlear Implantation held under the Hearing Impaired Karnataka Campaign at Arogya Soudha in Bengaluru on Thursday. | Photo credit: ALLEN EGENUSE J.

The Karnataka health department will formulate a clear policy to prevent hospitals from detaining the bodies of deceased patients due to unpaid medical bills, Health Minister UT Khader said on Thursday.

After a meeting with representatives of the Private Hospitals and Nursing Homes Association (PHANA) in Bengaluru, Mr. Khader said that no patient or family should be put under financial pressure during a medical emergency and that hospitals should not deny families access to the bodies of deceased patients due to pending charges.

The health department will formulate a policy to address the issue, he said, reiterating that the state government’s priority remains patient welfare and affordable healthcare.

The meeting also discussed measures to curb over-billing by private hospitals, regulate prices of essential medicines and improve transparency of medical fees. Further decisions on allegations of overcharging will be taken after consultation with officials, Mr Khader said.

Measures to regulate drug prices

The high prices of essential drugs, especially those used in cancer, heart and kidney care, will be discussed with drug manufacturers and distributors, the minister said.

Citing cases of substantial discrepancies between drug costs and the prices charged to patients, he said the department had undertaken an exercise to ascertain the actual cost of the drugs. He referred to cases where injections costing ₹5,000 to ₹6,000 were allegedly sold for up to ₹65,000. He said the ministry had carried out an exercise to find out the actual cost of offloading drugs and check the margins charged in the supply chain.

While scheduled drugs are subject to price regulation, concerns remain about the prices charged for some drugs. The government would hold discussions with drug manufacturers and distributors to address excessive mark-ups, especially for drugs used in cancer, heart and kidney treatments, and to prevent undue increases in maximum retail prices (MRPs).

“We are also considering asking pharmaceutical companies to print the actual landing cost and MRP of the drug strips,” he said.

Mr Khader also reiterated that hospitals should prominently display the rates of major procedures from November 1. Hospitals offering a large number of services should keep detailed price lists at their receptions for public inspection.

Insurance billing under control

The government would convene a separate meeting with insurance companies that would resolve complaints about excessive billing for insured patients and simplify the claims settlement process, the minister said.

The meeting with private hospitals also addressed regulatory concerns related to the fire brigade, the Karnataka State Pollution Control Board and the Karnataka Private Medical Establishments (KPME) Act. He added that the government will review the representations received and take appropriate action.

Concerns about foreign investment in healthcare

The Minister of Health expressed concern about the growing commercialization of health care and the consequences of foreign investment in corporate hospital chains.

He said the state government would take up the matter with the Union government to examine whether foreign investment in healthcare should be restricted or subject to stricter price controls.

The issue comes amid concerns about the rising cost of private healthcare and the financial burden on patients. Any further steps in this regard would require consultation with the Union government and consideration of the applicable regulatory framework, he added.

Published – 22 Oct 2026 22:18 IST