Karnataka to frame policy against hospitals withholding bodies over unpaid bills

Health and Family Welfare Minister U.T. Khader at "Aalisu Kanda", a paediatric cochlear implantation symposium held under the Hearing Impairment-Free Karnataka campaign at Arogya Soudha in Bengaluru on Thursday. | Photo Credit: ALLEN EGENUSE J. Karnataka’s Health Department will formulate a clear policy to prevent hospitals from withholding the bodies of deceased patients over unpaid medical bills, Health Minister U.T. Khader said on Thursday.Speaking after a meeting with representatives of the Private Hospitals and Nursing Homes Association (PHANA) in Bengaluru, Mr. Khader said no patient or family should be subjected to financial pressure during a medical emergency and that hospitals should not deny families access to the bodies of deceased patients on account of pending dues.The Health Department would frame a policy to address the issue, he said, reiterating that patient welfare and affordable healthcare remained the State government’s priorities.The meeting also discussed measures to curb excessive billing by private hospitals, regulate the prices of essential medicines, and improve transparency in medical charges. Further decisions on allegations of exorbitant billing would be taken after consultations with officials, Mr. Khader said.Measures to regulate medicine pricesDiscussions will be held with pharmaceutical manufacturers and distributors to address the high prices of essential medicines, particularly those used in cancer, cardiac, and kidney care, the Minister said.Citing instances of substantial differences between the cost of medicines and the prices charged to patients, he said the department had undertaken an exercise to ascertain the actual landing costs of drugs. He referred to cases in which injections costing ₹5,000 to ₹6,000 were reportedly being sold for as much as ₹65,000. He said the department had undertaken an exercise to ascertain the actual landing costs of medicines and examine the margins charged along the supply chain.While scheduled drugs are subject to regulated price controls, concerns persist over the prices charged for certain medicines. The government would hold discussions with pharmaceutical manufacturers and distributors to address excessive mark-ups, particularly on medicines used in cancer, cardiac, and kidney care, and to prevent unauthorised increases in maximum retail prices (MRP).“We are also contemplating asking the pharma companies to print the actual landing costs and MRP on the medicine strips,” he said.Mr. Khader also reiterated that hospitals should display the rates of major procedures prominently from November 1. Hospitals offering a large number of services should maintain detailed rate cards at their reception counters for public scrutiny.Insurance billing under scrutinyThe government would convene a separate meeting with insurance companies to address complaints of excessive billing for insured patients and simplify the claims settlement process, the Minister said.The meeting with private hospitals also addressed regulatory concerns relating to the Fire Department, the Karnataka State Pollution Control Board, and the Karnataka Private Medical Establishments (KPME) Act. The government would examine the representations received and take appropriate steps, he added.Concerns over foreign investment in healthcare The Health Minister raised concerns over the growing commercialisation of healthcare and the implications of foreign investment in corporate hospital chains.He indicated that the State government would take up the issue with the Union government to explore whether foreign investments in the healthcare sector should be restricted or subjected to stricter price controls.The issue comes amid concerns over the rising cost of private healthcare and the financial burden on patients. Any further steps in this regard would require consultations with the Union government and consideration of the applicable regulatory framework, he added. Published - October 22, 2026 10:18 pm IST