Lahore High Court Limits Profit Margins in Private Health Sector

The Lahore High Court (LHC) has made a landmark decision to regulate how much profit private hospitals and laboratories in Punjab can earn from medical services.

According to the court’s ruling, private healthcare providers will now be allowed to charge only up to 20 percent profit over their actual cost of services. The verdict aims to make healthcare more affordable and stop excessive charges that have become a burden for ordinary patients.

Court Upholds Punjab Healthcare Commission’s Role

Justice Raheel Kamran Sheikh, who announced the decision, confirmed that the Punjab Healthcare Commission (PHC) has full authority to control pricing and profit structures in the private health sector.

Several major hospitals, including Shaukat Khanum Memorial Cancer Hospital & Research Centre, had challenged the PHC’s right to fix service charges. However, the court rejected their petitions, stating that healthcare is not a luxury but a basic human right that must remain accessible to everyone.

How the New Rules Work

Under the new order, all private hospitals and diagnostic labs must:

• Submit their price lists and service rates to the PHC for approval.

• Provide detailed cost reports, verified by qualified accountants.

• Ensure that their profit does not exceed 20% above operational costs.

The PHC will now oversee all pricing to make sure hospitals and labs follow the new guidelines.

Goal: Affordable Healthcare for All

The decision comes after rising complaints from patients who say private hospitals were charging extremely high rates for tests, scans, and treatments. The court said the move is meant to protect citizens from unfair medical costs and promote transparency in the healthcare system.

The LHC emphasized that healthcare should not be treated as a business venture focused on profits alone. Instead, private providers should balance financial sustainability with social responsibility.

Mixed Reactions from the Industry

While the public has welcomed the ruling, some hospital representatives believe the decision might create financial challenges. They argue that imported medical equipment, high electricity bills, and skilled staff salaries make healthcare services expensive to run.

However, patient rights groups and social organizations have praised the verdict, calling it a much-needed step to make private healthcare fair and affordable.

What Happens Next

The Punjab Healthcare Commission will soon issue detailed instructions for hospitals and diagnostic centers to implement the court’s order. Officials say monitoring teams will review pricing structures and take action against any violations.

Experts believe this ruling could set an example for other provinces in Pakistan, encouraging similar measures to regulate healthcare costs nationwide.

In summary:

The Lahore High Court’s ruling is a major win for patients in Punjab. By setting a clear 20% profit cap, the court has drawn a line between fair business and exploitation  aiming to make healthcare more transparent, ethical, and affordable for everyone.

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