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LHC upholds Punjab Healthcare Commission's power to fix medical prices

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The Lahore High Court has upheld the Punjab Healthcare Commission’s authority to set and monitor prices for hospitals, laboratories, and other medical institutions across the province.

LAHORE (Dunya News) – Justice Raheel Kamran Sheikh of the Lahore High Court has dismissed petitions filed by Shaukat Khanum Memorial Cancer Hospital and other private healthcare institutions challenging the Punjab Healthcare Commission’s power to regulate medical prices.

In his detailed 24-page verdict, Justice Sheikh ruled that the Commission holds complete legal authority to determine and monitor prices for hospitals, laboratories, and other medical facilities across Punjab.

The judgment stated that healthcare services are not mere commodities but an essential component of human life. Justice Sheikh observed that under the Constitution, healthcare forms part of the fundamental right to life and human dignity. Every citizen, he wrote, has the constitutional right to timely and quality medical treatment, while the state bears responsibility to ensure that healthcare facilities are available, accessible, and affordable for all.

The verdict further explained that this state responsibility extends to regulating and supervising private healthcare institutions. Without such oversight, the court noted, unregulated private hospitals and laboratories could exploit the public.

The petitioners, including Shaukat Khanum Memorial Trust, argued that the Punjab Healthcare Commission Act of 2010 only authorises hospitals to display their price lists, not for the Commission to fix them. Counsel for Shaukat Khanum maintained that the Punjab government could not regulate an institution operating at the interprovincial level. Other institutions claimed that the price controls were imposed without evidence of overcharging.

In response, the Punjab government’s counsel contended that health is a matter within the provincial domain. The Commission’s lawyer added that regulating prices is essential to maintain quality standards and prevent exploitation, asserting that the authority to do so is clearly provided by law. The court concurred, stating that diagnostic laboratories form a vital part of the healthcare system and that regulating their prices falls well within legal boundaries.

Justice Sheikh concluded that price regulation serves the public interest and protects citizens from exploitation. Consequently, all petitions were declared inadmissible and dismissed by the court.

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