Hi Friends,

Even as I launch this today ( my 80th Birthday ), I realize that there is yet so much to say and do. There is just no time to look back, no time to wonder,"Will anyone read these pages?"

With regards,
Hemen Parekh
27 June 2013

Now as I approach my 90th birthday ( 27 June 2023 ) , I invite you to visit my Digital Avatar ( www.hemenparekh.ai ) – and continue chatting with me , even when I am no more here physically

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Friday, 13 February 2026

Regulating Medical Pricing ?


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Context :

No More Free Services at State Run Hospitals ; Govt announces New Rates … ToI .. 05 Feb 2026

Context :

MP Ajeet Gopchade moves bill to regulate medical prices  … ET … 09 Feb 2026


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My  Take :


Some 8 years ago , I sent to our Cabinet Ministers , following E mail :


>     Modicare : A Game Changer  …………………………. 01  Feb  2018

 

 

Dear Shri J P Naddji

Health Minister [ india-hfm@gov.in ]


While welcoming the bill introduced by Shri Ajeet Gopchade, I urge you to also consider the following draft

 

With regards,

Hemen Parekh

BILL

to

provide for the regulation, transparency and rationalisation of prices charged by

 hospitals and healthcare establishments; to establish a statutory authority for

 standardisation and oversight of medical charges; to protect patients from

 overcharging; and for matters connected therewith or incidental thereto.


BE it enacted by Parliament in the Seventy-Seventh Year of the Republic of India as follows:—


THE NATIONAL HEALTHCARE PRICING TRANSPARENCY AND PATIENT PROTECTION BILL, 2026


STATEMENT OF OBJECTS AND REASONS

Healthcare affordability in India has emerged as a matter of grave national

 concern. Despite the enactment of the Clinical Establishments (Registration and

 Regulation) Act, 2010, there exists no statutory authority mandated specifically to

 regulate, rationalise or standardise medical charges across public and private

 healthcare establishments.


In the absence of a uniform and transparent pricing framework, hospitals and

 allied establishments levy widely divergent and often non-transparent charges for

 similar procedures, diagnostics, room rent, implants, medicines and consumables.

 Such practices have resulted in substantial out-of-pocket expenditure, financial

 distress, and erosion of equitable access to healthcare, which forms an integral

 component of the right to life under Article 21 of the Constitution.


This Bill seeks to:


1.     Establish an independent National Healthcare Pricing Authority.

2.     Notify a National Schedule of Standard Medical Charges.

3.     Mandate transparent public disclosure of approved rates.

4.     Introduce compulsory digital itemised billing.

5.     Create a National Health Billing Registry for oversight.

6.     Provide for automatic refunds and graded penalties in cases of

        overcharging.

7.     Enable anonymised health data analytics for public interest planning.


The Bill aims to promote fairness, transparency, accountability and affordability in

 the healthcare ecosystem of India.


CHAPTER I

PRELIMINARY


1. Short title, extent and commencement

(1) This Act may be called the National Healthcare Pricing Transparency and

     Patient Protection Act, 2026.


(2) It extends to the whole of India.


(3) It shall come into force on such date as the Central Government may, by

     notification in the Official Gazette, appoint.


2. Definitions

In this Act, unless the context otherwise requires—

(a) “Authority” means the National Healthcare Pricing Authority established under

     section 3;


(b) “Clinical establishment” shall have the meaning assigned under the Clinical

      Establishments (Registration and Regulation) Act, 2010;


(c) “Medical charge” includes consultation fees, diagnostic charges, procedure

     charges, room rent, implant costs, medicines, consumables and any other fee

     charged for healthcare services;


(d) “National Schedule” means the National Schedule of Standard Medical Charges

      notified under section 6;


(e) “Prescribed” means prescribed by rules made under this Act.


CHAPTER II

ESTABLISHMENT OF NATIONAL HEALTHCARE PRICING AUTHORITY

3. Constitution of Authority

(1) The Central Government shall, by notification, establish an Authority to be

     known as the National Healthcare Pricing Authority (NHPA).


(2) The Authority shall consist of—


(a) a Chairperson, being a retired Judge of the Supreme Court of India;


(b) one member having expertise in health economics;


(c) one member having experience in public health administration;


(d) one member having expertise in cost accounting and audit;


(e) one member having expertise in digital health systems;


(f) one representative of patient welfare organisations.


(3) The terms and conditions of service shall be as prescribed.


4. State Authorities

State Governments shall constitute corresponding State Healthcare Pricing

 Authorities to implement and monitor compliance within their respective

 jurisdictions.



CHAPTER III

REGULATION AND STANDARDISATION OF MEDICAL CHARGES

5. Powers and functions of Authority

The Authority shall—

(a) frame, notify and periodically revise a National Schedule of Standard Medical

     Charges;


(b) determine maximum permissible charges for specified medical services;


(c) standardise billing formats;


(d) monitor compliance;


(e) adjudicate complaints relating to overcharging;


(f) recommend policy measures to Government.



6. National Schedule of Standard Medical Charges

(1) The Authority shall notify a National Schedule specifying maximum permissible

     charges for medical services.


(2) The Schedule shall be reviewed annually or as necessary.


(3) No clinical establishment shall charge in excess of the maximum rate specified.


7. Mandatory public disclosure

Every clinical establishment shall—


(a) prominently display approved rates at entrance and billing counters;


(b) publish such rates on its official website;


(c) provide itemised electronic bills containing service codes and rate references;


(d) issue digital receipts for all payments.



CHAPTER IV

DIGITAL BILLING AND REGISTRY

8. National Health Billing Registry

(1) The Central Government shall establish a National Health Billing Registry.


(2) All clinical establishments shall upload billing data in such format and manner

     as prescribed.


(3) The Registry shall ensure tamper-resistant digital storage and oversight.


9. Integration with Public Health Schemes

(1) Beneficiaries under Government health schemes may be issued digital health

     identification linked to approved identity systems, subject to applicable privacy

     laws.


(2) Payments under Government schemes shall be made directly to service

     providers through digital transfer.


(3) No cash reimbursement shall be permitted where prohibited under scheme

     guidelines.


CHAPTER V

PATIENT PROTECTION AND PENALTIES

10. Prohibition of overcharging

No clinical establishment shall levy any charge exceeding the maximum prescribed

under the National Schedule.


11. Refund and compensation

(1) Any excess amount charged shall be refunded within fifteen days.


(2) Failure to refund shall attract interest as prescribed.


12. Penalties

(1) For first contravention, penalty may extend to five times the excess amount

     charged.


(2) Repeated contraventions may result in suspension or cancellation of

     registration.


(3) Wilful and fraudulent overcharging may invite prosecution under applicable

     laws.


13. Whistleblower protection

Any person reporting fraudulent billing practices in good faith shall be protected in

accordance with prescribed rules.


CHAPTER VI

MISCELLANEOUS

14. Annual audit

Hospitals exceeding prescribed turnover shall undergo annual cost audit.


15. Power to make rules

The Central Government may, by notification, make rules to carry out the provisions of this Act.


16. Overriding effect

The provisions of this Act shall have effect notwithstanding anything inconsistent therewith contained in any other law for the time being in force.

 

COMPARISON TABLE

Healthcare Pricing Reform Proposals (2026)

 

Parameter

MP Ajeet Gopchade Bill (as reported)

My Draft Bill: National Healthcare Pricing Transparency & Patient Protection Bill, 2026


Primary Objective


Establish National Medical Pricing & Regulation Commission


Comprehensive pricing regulation + digital transparency + patient protection


Regulatory Body


National Medical Pricing & Regulation Commission


National Healthcare Pricing Authority (NHPA) + State Authorities


Chairperson


Retired Supreme Court Judge


Retired Supreme Court Judge


State-Level Structure

State & UT 

Commissions chaired by retired High Court Judges


State Healthcare Pricing Authorities (implementation + monitoring)


Scope of Regulation


Fix and regulate medical charges


Fix maximum charges + standardise billing + regulate room rent, implants, medicines, diagnostics, pregnancy services


Price Transparency


Mandatory public disclosure of approved rates


Mandatory display at entrance, billing counter, website + service code reference on each bill


Digital Billing Mandate


Not explicitly detailed


Compulsory itemised electronic billing with digital authentication ID


Central Data System


Not specified


National Health Billing Registry (NHBR)


Technology Architecture


Commission-based regulatory model


Digital-first regulatory architecture (tamper-resistant registry)


Big Data Analytics


Not mentioned


Permits anonymised data analytics for disease prediction & cost trend monitoring



Automatic Refund Mechanism



Complaint adjudication



Mandatory refund within 15 days + interest + graded penalties


Grievance Redressal


Commission empowered to adjudicate complaints


Authority adjudication + automatic financial remedy


Penalty Framework


Enforcement through penalties


Graded penalties + license suspension + prosecution for fraud


Integration with Ayushman Bharat / Public Schemes


Not specified


Digital identity integration + DBT-only payments + no cash reimbursement


Cashless Enforcement Model


Not detailed


Explicit digital transfer system to prevent fraud


Public Hospitals Coverage


Not clearly stated


Explicit uniform pricing mandate for State-run hospitals


Whistleblower Protection


Not mentioned


Included


Cost Audit Requirement


Not specified


Annual cost audit for large hospitals


Transparency Depth


Regulatory oversight


Real-time transparency + digital traceability


Structural Philosophy


Judicial oversight model


Judicial oversight + digital governance model


Preventive

 Dimension


Focus on price

control

Price control + systemic transparency + fraud prevention


Political Positioning


Consumer protection & affordability


Consumer protection + Digital India + Health Data Governance

 

Related  Past  E mails  to  Cabinet Ministers :



The  Bounty of Big Data  [ 30  April  2016  ]


https://myblogepage.blogspot.com/2016/04/the-bounty-of-big-data.html

 

3 D -Digital Delivery of Drugs ?  [  11  Oct  2015  ]


https://myblogepage.blogspot.com/2015/10/3-d-digital-delivery-of-drugs.html

 

Online Sale of Medicines ?  [  24  Dec  2016  ]



https://myblogepage.blogspot.com/2016/12/online-sale-of-medicines.html

 

Health Care through Mobile ?  [  24  Nov  2016  ]



https://myblogepage.blogspot.com/2016/11/health-care-through-mobile.html

 

A Mobile App named " BANMALI "  [  16  Sept  2016  ]



https://myblogepage.blogspot.com/2016/09/a-mobile-app-named-banmali.html

 

BANMALI is the TOTAL SOLUTION  [  14  Nov  2016  ]



https://myblogepage.blogspot.com/2016/11/banmali-is-total-solution.html

 

Saving 1.2 million Kids  [   29  June  2016  ]



https://myblogepage.blogspot.com/2016/06/saving-12-million-kids.html

 

Can Akshay Patra Banish Malnutrition ? [  05 June  2017  ]



https://myblogepage.blogspot.com/2017/06/can-akshay-patra-banish-malnutrition.html

 

 

 

 

 





 


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