Bengaluru, 30 October

The State government has told the Karnataka High Court it will defer implementation of a circular requiring hospitals to disclose procurement prices of medicines and medical devices on patient bills, pending a hearing on its validity.

The circular, issued on 1 October by the Commissioner of Food Safety and Drug Administration, was due to take effect on 1 November.

Justice CM Poonacha recorded the government's submission that the directive would not be enforced until the court hears the challenge. The court also noted a submission by Additional Advocate General BV Bhanuprakash that officials were reconsidering the circular.

The petition was filed by the Private Hospitals and Nursing Homes Association, Pristine Hospitals and Research Centre Private Limited, and doctor Halagere Mallikarjuna Prasanna.

The petitioners argue that the circular was issued without statutory authority and imposes disclosure requirements not envisaged under existing laws.

They contend that procurement prices vary according to suppliers, purchase volumes, discounts and credit arrangements, and that disclosure could expose confidential commercial terms and confuse patients.

They have also cited the short implementation timeline, saying compliance would require changes to billing software, accounting systems and administrative processes. The petitioners further allege that hospitals and other stakeholders were not adequately consulted.

Senior advocate Dhyan Chinnappa appeared for the petitioners.