Karnataka Pauses Hospital Pharmacy Price Disclosure Mandate

The Karnataka government informed the High Court on Friday that it will suspend the enforcement of a recent circular requiring hospital pharmacies to display both the purchase price and the maximum retail price on customer bills.

The decision follows a legal challenge from the Private Hospitals and Nursing Homes Association and a private hospital. Petitioners argued that the Food Safety and Drug Administration lacked the statutory authority to mandate the disclosure of private commercial agreements.

According to the petitioners, the circular was issued without sufficient consultation with stakeholders and could compromise confidential business arrangements. They noted that purchase costs fluctuate based on supplier discounts, credit terms, and order volumes.

The state government requested that the court refrain from issuing a stay on the circular while officials re-examine the policy. The court has adjourned the matter until November 11, during which time the mandate will not be enforced.