Karnataka has directed hospitals, healthcare institutions and licensed medicine sellers to disclose the procurement cost, maximum retail price (MRP) and amount charged to patients for medicines, medical devices and consumables from November 1, 2026. The initiative aims to improve transparency in healthcare billing and address significant differences between institutional purchase costs and prices charged to patients.

The directive issued by the Karnataka Food Safety and Drugs Administration (FDA) applies to government, private and trust hospitals, nursing homes, clinics, day-care centres and diagnostic centres. It also covers licensed clearing and forwarding agents, stockists, distributors, wholesalers and retailers.

Under the new requirements, hospitals must issue itemised bills listing each medicine, medical device, implant and consumable separately. Each applicable entry must include the product name, batch number, manufacturing and expiry dates, landing or base price excluding taxes, MRP, price charged to the patient and applicable taxes. The amount charged cannot exceed the applicable MRP or the ceiling price notified by the National Pharmaceutical Pricing Authority (NPPA), wherever applicable.

Healthcare institutions must also display notices at billing counters, pharmacy counters and admission desks informing patients of their right to access pricing information. Purchase invoices, procurement costs and billing records must be maintained for at least three years for inspection by authorised officials.

The move follows concerns raised by Karnataka over substantial price disparities involving medicines, high-cost cancer drugs, medical devices and hospital consumables. According to figures cited by state authorities, inspections identified 253 medicines with significant pricing anomalies. Further verification covered more than 768 medical consumables and 189 high-cost drugs.

Examples shared in reports highlight the scale of the differences. Gufipol was listed with a reported institutional landing cost of ₹86 against an MRP of ₹4,528, a difference of approximately 52.6 times. An adult nebuliser mask was listed at ₹44.50 against an MRP of ₹950, while an IV set had a reported landing cost of ₹14.75 and an MRP of ₹295. These comparisons reflect procurement cost versus printed MRP and do not, by themselves, establish the actual profit earned or the amount billed in every case.

Karnataka has also sought broader action from the Centre, including rationalisation of trade margins on essential and high-value medicines and consumables, wider price-control measures and improved monitoring across the supply chain.

The new disclosure requirements are intended to help patients scrutinise bills and give regulators clearer information for investigating potential overcharging. However, transparency alone does not guarantee lower prices; the impact will depend on implementation, enforcement and any further action on trade margins and medicine pricing.