The Kerala High Court recently dismissed multiple petitions challenging key provisions of the Kerala Clinical Establishments (Registration and Regulation) Act, 2018, including the mandate for hospitals and clinics to display their service rates prominently. The ruling reinforces the state’s commitment to transparency in healthcare pricing and patient rights.
Mandatory Display of Fee Rates Upheld
A significant provision under Section 39 of the Act requires all clinical establishments to display their fee rates and package rates for services in both Malayalam and English. The law also prohibits charging 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
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Petitioners, including the Indian Medical Association (IMA), Kerala Private Hospitals Association, and Indian Dental Association, argued that terms like "fee rate" and "package rate" were undefined, leading to potential arbitrary enforcement. However, the court noted that a Division Bench had already upheld this provision in Sabu P. Joseph v. State of Kerala (2021), making further challenges invalid.
Authorities Can Cancel Registration, But With Safeguards
Another contested provision was Section 25, which empowers authorities to cancel a clinic’s registration if it violates regulations or endangers patient health. The petitioners claimed this gave "unguided power" to officials.
The court clarified that cancellations require a show-cause notice, a hearing, and valid reasons. Establishments can also appeal to higher authorities, ensuring due process.
"The Authority must record reasons in writing before immediate closure, ensuring no arbitrary action." – Justice Harisankar V. Menon
Dentistry Included Under Medical Regulations
Some petitioners argued that dentistry should not fall under the Act since it doesn’t directly relate to "public health and sanitation." The court rejected this, stating:
"Dentistry is a specialized branch of medical science, and the State is competent to regulate it under healthcare laws."
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Patient Representatives in Regulatory Bodies Valid
The inclusion of patient welfare representatives in the State Council and Executive Committee was also challenged. The court ruled that since doctors and dentists are represented, patient representatives ensure balanced decision-making.
Court Rejects "Arbitrariness" Argument
Relying on Supreme Court precedents, the High Court emphasized that laws cannot be struck down merely for being "arbitrary" unless they violate constitutional provisions.
"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)
While dismissing the petitions, the court allowed hospitals and clinics to approach the government for resolving practical challenges in implementing the Act.
Case Title: Kerala Private Hospital Association and Another v. State of Kerala and Others & Connected Cases
Case Number: WP(C) 1365 of 2019 & Connected Cases
