Regulating Fees of Private Hospitals, Laboratories, and Doctors — A National Necessity
By: Zaheer Ahmed Awan
The health sector in Pakistan has increasingly turned into one of the most profitable industries in the country. Private hospitals, clinics, and pathology laboratories operate in almost every city and town, serving millions of citizens daily. Yet, despite being directly linked to human life, this sector largely remains unregulated, with no effective government control over fees or service charges.
In most developed countries, the healthcare industry—especially the private sector—is subject to strict governmental oversight. Authorities determine standardized rates for consultation, surgery, and diagnostic tests to ensure fairness and affordability. But in Pakistan, the situation is quite the opposite. The larger and more famous a hospital or laboratory, the higher the fees it charges. Doctors, clinics, and laboratories set their own prices, often without any justification or accountability.
It is astonishing that in Pakistan, even small vendors—fruit sellers, grocers, or shopkeepers—are bound by official price lists, and any violation invites immediate penalties. But when it comes to healthcare, where life and death are at stake, there is no regulatory framework ensuring fair pricing.
As a result, ordinary citizens are being financially crushed. A test that costs Rs. 2,000 in one lab might cost Rs. 10,000 in another. Consultation fees for doctors can range from Rs. 1,000 to Rs. 10,000, depending on reputation rather than qualification or service quality. In major cities, renowned specialists charge fees beyond the reach of common people, turning treatment into a luxury instead of a necessity.
International Practices
Across the world, private healthcare is regulated to protect patients from exploitation:
- United Kingdom: Under the National Health Service (NHS), even private healthcare providers must adhere to regulated fee structures. Hospitals and doctors cannot arbitrarily increase charges without approval from the health authorities.
- India: The Clinical Establishments (Registration and Regulation) Act 2010 requires all private hospitals, clinics, and laboratories to display government-approved rate lists and prohibits overcharging. Each state health commission monitors compliance.
- United States: Although much of healthcare is privatized, government programs like Medicare and Medicaid set standardized reimbursement rates. Hospitals charging above these limits can face fines or exclusion from federal insurance networks.
- United Arab Emirates and Saudi Arabia: The Ministries of Health strictly regulate private hospital fees. Each medical service—consultation, test, or surgery—has a maximum rate cap, and violations can lead to license suspension.
These examples demonstrate that healthcare regulation is a global norm, essential for maintaining fairness and protecting public welfare.
The Situation in Pakistan
Despite the establishment of the Health Care Commissions at the federal and provincial levels, Pakistan still lacks a clear and enforceable pricing policy for private medical institutions. Hospitals and labs are free to set whatever charges they deem fit. In many cases, the cost of a simple diagnostic test in a private lab is five to ten times higher than in a public hospital.
Patients are routinely charged for “emergency fees,” “consultation visits,” and “service taxes” that have no official basis. This unchecked freedom has turned healthcare into a commercial enterprise rather than a humanitarian service. It is eroding the very trust that patients should have in the medical profession.
What Needs to Be Done
To restore fairness and accountability in the healthcare system, Pakistan must take urgent regulatory action. The following steps are essential:
- Standardized Fee Structure: The Ministry of Health and provincial health commissions should determine uniform rates for consultations, tests, and procedures in private hospitals and labs.
- Mandatory Display of Rate Lists: All private hospitals, clinics, and laboratories must publicly display their approved fee lists at their entrances and reception areas.
- Digital Transparency: A central online portal should be established where citizens can check the official rates for different hospitals and labs across the country.
- Strict Penalties for Violations: Any institution found overcharging patients should face heavy fines, license suspension, or even closure.
- Free or Subsidized Services for the Poor: Each private hospital should be required to provide at least 10% of its services free or at a subsidized rate to financially disadvantaged patients, as practiced in India and the UAE.
- Doctor Fee Regulation: The government should also define a maximum consultation fee for medical practitioners to prevent exploitation of patients.
The Way Forward
Healthcare should never be treated as a business—it is a public service and a moral responsibility. When hospitals and doctors begin to prioritize profit over patients, society loses its sense of compassion. The state has a constitutional duty to ensure that every citizen receives medical care at a fair and affordable cost.
If the government continues to ignore this issue, millions of Pakistanis will remain deprived of basic healthcare simply because they cannot afford it. It is time for the Federal and Provincial Ministries of Health, along with Health Care Commissions, to implement a transparent, regulated system that protects patients from exploitation.
The people of Pakistan deserve a healthcare system that serves humanity, not one that exploits illness. Regulating fees is not just an administrative reform — it is a moral imperative for a just and equitable society.
