From time to time cases relating to overcharging by private hospitals are received by the government which are sent to concerned States/UTs for enquiry/examination and further necessary action to be taken . State Governments take action to prevent and control such practices and to maintain the records of such complaints.

The Government of India has enacted the Clinical Establishments (Registration and Regulation) Act, 2010 and notified Clinical Establishments (Central Government) Rules, 2012.

These provide for registration and regulation of Clinical Establishments including those in the private sector belonging to Allopathic and AYUSH systems of medicine. Therapeutic as well as diagnostic establishments are covered under this Act. In the States/Union Territories where the said Act is in force, the clinical establishments are required to meet the norms such as minimum standards of facilities and services, minimum requirement of personnel, maintenance of records and reports and displaying of rates at a conspicuous place. The clinical establishments are also required to follow Standard Treatment Guidelines issued by the Central/State Governments and charge rates for each type of procedure and service within the range of rates determined from time to time. The National Council for Clinical Establishments has approved a standard list of medical procedures and a standard template for costing of medical procedures and shared the same with the States and Union Territories for appropriate action by them. States/UTs are responsible for implementation and enforcement of the said Act.

Currently, the Act is applicable in 11 States namely Sikkim, Mizoram, Arunachal Pradesh, Himachal Pradesh, Uttar Pradesh, Bihar, Jharkhand, Rajasthan Uttarakhand, Assam and Haryana and all Union Territories except Delhi. Other States may adopt the Act under clause (1) of Article 252 of the Constitution. The Central Government is continuously persuading the States to adopt the Clinical Establishment Act, 2010 and ensure its strict implementation or consider bringing a State specific legislation in the matter, if they wish.