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Govt to release Standardised Billing Format for all hospitals, nursing homes, diagnostic centres

Barsha MisraWritten by Barsha Misra Published On 2025-03-24T13:46:24+05:30  |  Updated On 24 March 2025 4:31 PM IST
Centre to Introduce Standardised Format for Hospital Billing

Standardized Format for Hospital Billing

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New Delhi: Aiming to standardize the process of hospital billing, the Central Government is soon going to release a format for hospital bills that would apply to all clinical establishments including hospitals, nursing homes, and diagnostic centres, TNIE has reported.

Under this format, the hospitals will have to provide a clear and itemized breakdown of all charges incurred by the patient to ensure greater transparency and uniformity.

The process to set up this format was initiated last year by the Bureau of Indian Standards (BIS) to standardize and enhance transparency in the billing process of all healthcare centers. Now, if the BIS draft gets approval, hospital treatment is expected to turn more consumer-centric.

Also Read: Either Govt fixes standard rates for private hospitals or we will implement CGHS rates: Supreme Court issues Ultimatum

As per the latest media report by the New Indian Express, the standard, which has been developed by BIS and the Union Health Ministry in consultation with the healthcare sector experts, patient advocacy groups, and other stakeholders, is expected to help patients get itemized details for all consumables, services, medical facilities, etc.

BIS has also prescribed in the draft to include mandatory and optional elements in the hospital bills issued by healthcare facilities nationwide. Explaining how a standardised framework for hospital billing has become imperative, a top health ministry official told the Daily, "The aim of standardising billing formats across all healthcare facilities is to promote uniformity and reduce discrepancy in billing practices."

"By implementing the standard, healthcare providers can enhance patient trust, reduce billing-related grievances, and contribute to a more transparent and efficient healthcare ecosystem," said another official privy to the development.

BIS, operative under the Department of Consumer Affairs, Ministry of Consumer Affairs, Food and Public Distribution, started preparing the draft after a community social media platform, LocalCircles, found that many patients complained about not getting itemized details for consumables, services, and facilities, in their hospital bills. Many of them pointed out that no details about the charges were mentioned in the bill.

Medical Dialogues had earlier reported that last year, the Supreme Court slammed the Union Government for its failure to specify a range of rates for availing services at private hospitals and clinical establishments. Even though Rule 9 of the Clinical Establishment (Central Government) Rules, 2012 mandates that the Government shall determine the rate of fee chargeable from the patients at private hospitals and clinical establishments, it has not been enforced till now.

Last year, the Apex Court directed the Union Health Secretary to hold a meeting with the State counterparts and come up with a concrete proposal. Otherwise, the Court had warned to consider issuing CGHS rates if the Government failed to comply with the directions.

Pointing out how in recent years, there have been widespread concerns about a lack of uniformity and clarity in hospital billing practices, leading to confusion, disputes and lack of accountability, the health ministry official added, "To address these challenges and to promote a patient-centric approach, the need for a standardised framework for hospital billing has become imperative."

Apart from ensuring transparency, the move also aims to provide a clear and itemised breakdown of all charges so that the patients can understand the costs associated with their treatment.

Official sources informed that the summary of charges will include a clear and itemised breakdown of all charges like per day rent, type of room, charges for doctors and specialist consultations, surgery charges, surgeon fees, anesthesia charges, operation theatre charges, list of all diagnostic tests and their charges, list of all medicines dispensed, their quantity, price, batch number and expiry date, medical consumables and disposables, items such as syringes, gloves, catheters, etc., their quantity, price, batch number and expiry date and nursing charges.

It is likely that the optional elements will be at the discretion of the hospital and they may include details such as names, designation of attending doctors, breakdown of surgery/procedure charges, concessions, emergency contact details, blood group, or other relevant medical information, and discounts or concessions. Further, the standard is also likely to emphasize that medical bills will be easily readable, in a large font, generated in English and/or a local or regional language.

The allegations of overcharging by private hospital recently were raised before the Supreme Court. Recently, the Supreme Court directed all State Governments to examine and formulate policy decisions regarding private hospitals allegedly compelling patients to purchase medicines, implants, and medical devices from their own pharmacies or recommended outlets, often at higher-than-market rates.

The directive came in response to a public interest litigation (PIL) challenging this practice. The PIL sought a direction preventing private hospitals from mandating that patients purchase medicines, devices, and implants exclusively from hospital pharmacies, arguing that these facilities charge exorbitant rates compared to market prices. They also called for policy intervention from the Union and State Governments to regulate such practices.

Also Read: Are Private Hospitals Overcharging? SC intervenes, Directs States to Frame Policies

central governmenthospital billshospitalsbillingnursing homesdiagnostic centres
Source : with inputs
Barsha Misra
Barsha Misra

Barsha completed her Master's in English from the University of Burdwan, West Bengal in 2018. Having a knack for Journalism she joined Medical Dialogues back in 2020. She mainly covers news about medico legal cases, NMC/DCI updates, medical education issues including the latest updates about medical and dental colleges in India. She can be contacted at editorial@medicaldialogues.in.

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