From Nov 1, Karnataka hospitals must disclose medicine procurement costs, MRP, and price to patient on bills

All hospitals and healthcare institutions in Karnataka will display the base price and the maximum retail price (MRP) on bills for medicines, medical devices and consumable items from November 1.

In an Order dated October 1, the Food Safety and Drugs Administration of Karnataka said the move was taken in the wake of significant gap between the actual procurement price of the medicine and the MRP printed on medicines, medical devices and consumables. It said the Order will ensure price transparency, protect patient interests, and prevent unfair trade practices. The FSDA instruction covers all hospitals and healthcare institutions and the C&F agents, whole sale and retailer distributors that supply these medicines.

The government Order says that from November 1 onwards all hospitals and healthcare institutions run by government, private and trusts should issue itemised bill for every patient, showing each medicine, device, implant and consumable separately. It also says each line item should have the name of the product, the landing price, MRP, priced charged to patient and applicable taxes.

It also calls for display of notices at billing counters and admission desks informing patients of their right to see the landing price and MRP on the bill. The establishments should also maintain records of purchase invoices, landing prices and billing details for at least three years for inspection. The district health officer, chief medical officer or drug control authority of each district will be the nodal officer in charge of monitoring the implementation of the government directive.

Incidentally, the Union Health Ministry has on October 12 written to all state governments and Union Territories to ensure that hospital establishments and healthcare facilities in their jurisdiction display the rates for services and facilities in a transparent and conspicuous manner.

The Health Ministry said display of rates enable patients and their attendants to understand the likely financial implications of treatment, making informed decisions and plan their healthcare expenditure. The move will also help reduce avoidable confusion and billing related disputes.

The Ministry had also wanted the display of pricing and rates of treatment packages for foreign patients arriving in India on medical or AYUSH visas. Such transparency would facilitate informed decision making by international patients, minimise potential grievances relating to pricing and billing and further strengthen India’s position as a trusted and patient centric destination, it said.