Kerala High Court Backs Transparency: Hospitals Must Display Treatment Rates Clearly

The Kerala High Court has taken a firm step toward transparency in healthcare by upholding a key rule in the Kerala Clinical Establishments (Registration and Regulation) Act, 2018. The court has dismissed petitions filed by major medical associations like the Indian Medical Association (IMA) and Kerala Private Hospitals Association, which had challenged certain provisions of the Act.

This landmark decision ensures patients are informed about the fees and package rates for various treatments and services — a move that supports accountability and trust in the healthcare system.

✅ What the Law Says: Display Rates Openly

According to Section 39 of the Act, all hospitals and clinics must display the fee and package rates for their services in both Malayalam and English. This display must be visible to the public, and facilities cannot charge more than the displayed rates.

“Every clinical establishment shall display… the fee rate and package rate charged for each type of service provided and facilities available, for the information of the patients.” – Section 39 of the Act

The petitioners argued that terms like “fee rate” were not clearly defined. But the court reminded them that this issue had already been settled in the Sabu P. Joseph v. State of Kerala (2021) case. So, there was no legal ground for further challenge.

⚖️ Registration Can Be Cancelled – But Fairly

Section 25 of the Act gives authorities the power to cancel a clinic’s registration if it breaks the rules or puts patients’ health at risk. The medical bodies claimed this gave too much unchecked power to officials.

However, the High Court clarified that cancellations:

Require a show-cause notice
Must include a hearing
Must have valid written reasons
Are subject to appeal, protecting the rights of hospitals

“The Authority must record reasons in writing before immediate closure, ensuring no arbitrary action.” – Justice Harisankar V. Menon

🦷 Dentistry is Part of Healthcare

Some petitioners argued that dental clinics shouldn’t be governed by the same rules as hospitals. The court strongly disagreed, confirming that dentistry is a vital branch of medicine and can be regulated by state healthcare laws.

This ensures that all types of healthcare providers are held to the same standard when it comes to patient rights and pricing transparency.

👥 Including Patient Representatives Is Fair

The law also mandates the presence of patient welfare representatives in state-level regulatory bodies. The court upheld this provision, noting that these representatives provide balanced governance alongside doctors and dentists.

This ensures patients have a voice in decisions that affect their care and rights.

❌ “Arbitrary” Isn’t Enough to Strike Down a Law

Some argued the Act was “arbitrary.” But the court emphasized that laws must violate the Constitution to be struck down, not just appear unreasonable.

“An enactment cannot be invalidated just because it seems unreasonable. The legislature’s wisdom must be respected.” – Referring to State of A.P. v. McDowell & Co. (1996)

🏥 A Win for Healthcare Transparency

This decision supports fair pricing, regulatory accountability, and patient empowerment in Kerala’s healthcare system. Clinics and hospitals can still reach out to the government if they face practical difficulties in following the law.

At The Doctorpreneur Academy, we believe that awareness of healthcare regulations is essential for every medical professional. Whether you run a clinic or a multi-speciality hospital, knowing your legal responsibilities helps you serve your patients better and build trust.

✅ Key Takeaways: