Kerala HC upholds Clinical Establishments Act; dismisses appeals by IMA, private hospitals

The Kerala High Court on Wednesday dismissed appeals filed by the Indian Medical Association (IMA) and the Kerala Private Hospitals Association challenging the validity of the Kerala Clinical Establishments Act and Rules.

A Division Bench of Justice Sushrut Arvind Dharmadhikari and Justice Syam Kumar V M upheld the law, which has been implemented in phases since 2019, rejecting arguments that it was vague, arbitrary or impractical. The court said the Act aligns with global standards similar to those in the US and EU.

The associations had opposed mandatory disclosure of employee details, public display of service rates, and requirements such as providing lifesaving treatment and safe transfer of patients. The state defended the law as necessary to ensure patient safety, transparency, ethical standards and preparedness during health emergencies.

The court held that the Act only operationalises constitutional duties already in place by introducing minimum standards, transparency norms and emergency care obligations.

Key findings

• Price disclosure: The Bench rejected claims of vagueness, stating hospitals are required to publish baseline tariffs and provide itemised billing for add-ons or complications.
• Staff details: Hospitals need not publish personal information, but must furnish staff details to authorities for regulatory checks. The court directed the state to frame confidentiality and data-protection guidelines.
• Emergency care: All hospitals must provide first aid and stabilisation to the extent possible and ensure safe transfer. Denial of lifesaving care over non-payment is prohibited.
  Court’s guidelines
  The Bench issued guidelines mandating:
• Visible display of rates, services, patient rights and grievance contacts in English and Malayalam.
• Patient information brochures at admission and online.
• Grievance desks with time-bound resolution and escalation to district authorities.
• Regular compliance audits by the District Registering Authority.
• Mandatory handover of all medical reports at discharge.

The court asked the state government to publicise the judgment widely for a month and submit a compliance report. The Registry was directed to forward the order to the Chief Secretary and the State Police Chief.

The writ appeals were disposed of accordingly.
(With LiveLaw inputs)