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The Kerala High Court has upheld the provisions of the Kerala Clinical Establishments (Registration and Regulation) Act, 2018, affirming that all clinical establishments in the state must prominently display the fees and package rates for their services in both Malayalam and English. This move aims to ensure transparency and protect patients from unexpected charges.
Key Highlights of the Judgment
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Mandatory Display of Rates: The court emphasized that every clinical establishment is required to display, in a conspicuous place, the fee and package rates for each type of service provided, as well as the facilities available. This requirement is intended to inform patients and prevent overcharging.
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Challenge by Medical Associations Dismissed: The provisions were challenged by several doctors’ associations, including the Indian Medical Association (IMA) and the Kerala Private Hospitals Association, who argued that the terms “fee rate” and “package rate” were undefined and could lead to arbitrary action by authorities. The court, however, dismissed these concerns, noting that the matter had already been settled in a previous Division Bench ruling.
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Regulation of Registration Cancellation: The court also addressed concerns about the authority to cancel the registration of clinical establishments. It clarified that such powers are not arbitrary, as establishments are given a show-cause notice, an opportunity to be heard, and the right to appeal before any cancellation is finalized. The court found that adequate safeguards exist to prevent misuse of this power.
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Inclusion of Dentistry and Patient Representatives: The court rejected objections to the Act’s applicability to dentistry and the inclusion of patient welfare organization representatives in regulatory bodies. It ruled that dentistry is a recognized part of modern medicine and that patient representation ensures inclusiveness in state health councils.
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Grounds for Challenging Legislation: The bench reiterated that a law can only be struck down on grounds of legislative incompetence, violation of fundamental rights, or constitutional provisions, none of which were found in this case. The court also referenced Supreme Court judgments supporting the need for external regulation in the medical field.
Implications
The Kerala High Court’s decision reinforces transparency in healthcare pricing and upholds regulatory oversight to protect patient interests. Hospitals and clinics across Kerala are now legally bound to display their rates, with mechanisms in place to address grievances and ensure fairness in enforcement.
Disclaimer: This article is based on information reported by Medical Dialogues as of June 25, 2025. For the most current and detailed legal interpretations, readers are advised to consult the official Kerala High Court order and the Kerala Clinical Establishments (Registration and Regulation) Act, 2018.
