Lahore High Court Fixes Private Health Sector’s Profit Margins

The Lahore High Court has ruled that diagnostic laboratories and healthcare providers in Punjab cannot charge more than a 20% profit over their costs. Justice Raheel Kamran announced the decision, rejecting the stance of Shaukat Khanum Memorial Trust.

The court gave the Punjab Healthcare Commission the final authority to approve service charges set by private diagnostic labs and healthcare institutions. This authority is based on the Punjab Healthcare Commission Act of 2010.

According to the court, private health facilities and labs must submit their proposed service charges to the Punjab Healthcare Commission for approval. Only certified chartered or cost accountancy firms can determine the actual cost of services.

Justice Raheel Kamran stated that healthcare services cannot be treated like commercial goods. He emphasized that access to quality healthcare is a constitutional right and essential for a civilized society. The state has the power to monitor private healthcare providers to prevent exploitation and ensure fair pricing.

The court clarified that while private health institutions can set their own prices, they cannot earn more than a 20% profit on the actual cost. The Punjab Healthcare Commission will review and approve all proposed charges to protect public interest.



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