LAHORE: The Lahore High Court has ruled that diagnostic laboratories and private healthcare providers in Punjab cannot charge more than a 20% profit over their actual costs. Justice Raheel Kamran delivered the verdict, dismissing the stance of Shaukat Khanum Memorial Trust on unrestricted pricing.
Punjab Healthcare Commission Granted Oversight Authority
In its decision, the court granted the Punjab Healthcare Commission (PHC) final authority to regulate and approve service charges set by private labs and hospitals. The ruling is grounded in the Punjab Healthcare Commission Act of 2010, empowering the PHC to oversee pricing structures and prevent excessive profits.
According to the judgment, all private healthcare facilities and diagnostic laboratories must submit their proposed service charges to the PHC for approval. Only certified chartered accountants or cost accountancy firms can assess and verify the actual cost of services before submission.
Ensuring Fair Pricing and Public Interest
Justice Kamran emphasized that healthcare services should not be treated as commercial commodities. He underscored that access to affordable and quality healthcare is a constitutional right and a fundamental element of a civilized society. The court noted that the state holds the power to regulate private medical institutions to prevent exploitation and protect public welfare.
The court further clarified that while private institutions may determine their service prices independently, profits cannot exceed 20% of the verified cost. The PHC will review all proposed rates to ensure transparency, fairness, and patient protection.
Promoting Ethical Medical Practices
Legal experts say the ruling reinforces ethical medical practices by balancing private enterprise with public responsibility. It also strengthens the Punjab government’s regulatory framework for the healthcare sector, promoting accountability and patient rights.
