Karnataka HC seeks Centre, State response to plea against disclosure of hospital medicine purchase prices
Bengaluru: The Karnataka High Court has issued notices to the Centre and State government on a petition challenging a directive requiring hospitals to disclose the purchase prices of medicines, medical devices and consumables along with the amounts charged to patients from November 1.
The petition has been filed by the Private Hospitals and Nursing Homes Association, Pristine Hospitals and Research Centre Private Limited, and a doctor. Justice C M Poonacha sought responses from the Union Health Ministry, Karnataka Health and Family Welfare Department and the state's Food Safety and Drug Administration.
At the centre of the dispute is an October 1 circular issued by the Karnataka Food Safety and Drug Administration Commissioner, directing healthcare institutions to mention three prices on itemised bills: the actual procurement or landing cost, the maximum retail price (MRP) and the final amount charged to patients.
According to a Bar and Bench report, the directive also requires hospitals to display the pricing information at billing counters and pharmacies, publish relevant details on their websites and preserve purchase invoices and billing records for at least three years. District health and drug control authorities have been assigned monitoring and enforcement responsibilities.
The petitioners have also argued that the state authority does not have the legal power to impose such a disclosure requirement. They contend that existing drug pricing regulations govern MRP and specified price controls but do not require hospitals to reveal their procurement costs to patients.
They have also questioned the applicability of the Legal Metrology Act and other regulatory provisions cited in support of the circular, arguing that these do not authorise compulsory disclosure of hospitals' purchase prices.
The hospitals further contend that procurement costs differ according to suppliers, quantities, discounts and commercial arrangements. Making these details public, they argue, could expose confidential business information and create confusion among patients, Bar and Bench reported.
The petition also raises concerns over the November 1 implementation deadline, stating that hospitals would need to modify billing software, accounting systems and procurement records. The petitioners said representations seeking withdrawal of the circular had failed to resolve the issue, prompting them to approach the High Court.
Also Read:Class 10 pass man arrested for allegedly practising medicine without degree in Vadodara
