From November 1, hospitals were to show procurement prices in patient bills; with the State assuring the Karnataka High Court that its medicine price disclosure circular will not be insisted upon till the next hearing on November 12, that obligation is not being enforced for now.
Bengaluru: The State has told the Karnataka High Court that a circular directing hospitals and healthcare institutions to disclose the procurement or landing price of medicines, medical devices and consumables in itemised patient bills will not be insisted upon till the next date of hearing, and the Court on Friday, October 30 recorded that assurance. Private hospitals have challenged the circular as issued without statutory authority [Private Hospitals and Nursing Homes Association and Others v. State of Karnataka and Others].
The assurance was given before Justice C.M. Poonacha by Additional Advocate General B.V. Bhanuprakash, on instructions. The Court posted the matter to November 12, 2026, when it may consider whether any interim relief is needed.
What the order records
The order puts the State’s statement in these words:
“The Additional Advocate General appearing on behalf of the respondents would submit, on instructions, that the concerned officials are in the process of having a relook at the impugned circular dated 01.10.2026 and the implementation of the impugned circular dated 01.10.2026 will not be insisted upon till the next date of hearing.”
How the assurance came to be given
The Additional Advocate General had sought time to examine the matter and asked the Court not to pass an interim order staying the circular, saying he would consult the officials concerned. He explained that the purpose of the circular was only to have hospitals indicate the landing or base price.
Justice C.M. Poonacha noted the petitioners’ concern that any failure to comply from November 1 could be treated as a default, and told the State that if it was not going to enforce the circular for some days, that had to come on record. The State then gave the assurance, which the Court recorded in its order.
What the circular asks of hospitals
Issued on October 1, 2026 by the Commissioner of Food Safety and Drug Administration, Karnataka, the circular requires hospitals, from November 1, to show in each itemised bill the actual procurement or landing price, the maximum retail price and the price charged to the patient for medicines, medical devices and consumables.
The petitioners are the Private Hospitals and Nursing Homes Association, Pristine Hospitals and Research Centre Private Limited and Dr. Halagere Mallikarjuna Prasanna. They contend that the circular has no statutory basis and imposes a disclosure obligation the existing legal framework does not contemplate.
According to the petitioners, procurement prices vary with suppliers, quantities, discounts, rebates and credit terms, so compulsory disclosure would expose confidential commercial arrangements and could confuse patients comparing prices across hospitals. They also say the short deadline would force changes to billing software, accounting systems and procurement records, and that hospitals, nursing homes and pharmacies were not consulted.
What the order does, and what it leaves open
The order is not a stay and decides nothing on the merits. It records a statement by the State that officials are reconsidering the circular, which removes the immediate risk of default for hospitals from November 1 while leaving both sides free to argue the validity of the measure on November 12.
Price transparency in hospital bills is a live public concern, and the circular would have let patients see the margin between what a hospital pays for a medicine and what it charges. The challenge raises a basic administrative law question: whether such an obligation can be imposed by an executive circular, or needs backing in a statute or rules.
Case Title: Private Hospitals and Nursing Homes Association and Others v. State of Karnataka and Others
Bench: Justice C.M. Poonacha, Karnataka High Court
Date of Order: October 30, 2026 (next hearing November 12, 2026)
Appearances: Senior Advocate Dhyan Chinnappa for the petitioners; Additional Advocate General B.V. Bhanuprakash for the State