State to introduce tough new law to cover hospitals, other clinical establishments

The draft bill makes the registration of all clinical establishments compulsory, and has a provision of a ₹5-lakh penalty and six-month imprisonment term for defaulters

MUMBAI: The Maharashtra government is set to introduce a sweeping new law to regulate hospitals, clinics, diagnostic centres and virtually the entire healthcare sector through the proposed Maharashtra Clinical Establishment (Registration and Regulation) Act, 2025. The draft legislation seeks to replace the Bombay Nursing Homes Registration Act, 1949, and establish a comprehensive framework for registration, regulation, inspection and standardisation of healthcare facilities across the state.

State to introduce tough new law to cover hospitals, other clinical establishments

The draft bill makes the registration of all clinical establishments compulsory, and has a provision of a ₹5-lakh penalty and six-month imprisonment term for defaulters. Focusing on patients’ rights and grievances, it mandates a display of treatment charges, adherence to standardised rates and treatment protocol. Unlike existing laws, it covers all recognised systems of medicine, including ayurveda, yoga and naturopathy. It also intends to prescribe and enforce a minimum standards of facilities and services to standardise healthcare quality as mandated by the National Council for Clinical Establishments.

Public health department officials said the bill was with Devendra Fadnavis, who asked to look at it before putting it up for cabinet approval. “Once he approves it, it will go to the cabinet and then be tabled in the state legislature,” said an official. “Attempts have been made by earlier governments to introduce such a bill, but the powerful lobby of doctors, hospitals, clinics and laboratories opposed it tooth and nail.”

One of the most significant provisions in the draft is the mandatory requirement for all registered clinical establishments to provide immediate stabilisation treatment in emergency medical conditions. An emergency medical condition is broadly defined as a situation where the absence of immediate treatment could seriously jeopardise a person’s health, bodily functions or organs.

The legislation proposes a robust administrative structure for implementation. A State Council for Clinical Establishments headed by the health minister will be constituted to determine standards, oversee implementation and maintain the state register of healthcare establishments. The council will include senior government officials, representatives of medical, dental, nursing and pharmacy councils, Indian systems of medicine, paramedical professionals, the Indian Medical Association and consumer groups.

The bill gives extensive powers to the government to issue policy directions, and has been framed with the objective of modernising the healthcare regulatory framework. “The existing Bombay Nursing Homes Registration Act had become outdated and inadequate because it covered only nursing homes and residential healthcare facilities,” said an official. “The law is also intended to curb quackery and ensure that only qualified establishments are allowed to operate.”

Rajesh Tope, former public health minister, said that the Clinical Establishment Act was the need of the hour in the public interest. “Many states in the country have implemented it, and we had attempted it during our government during 2019-22,” he said. “There are certain provisions like displaying the fees for a treatment, which doctors and their associations are opposing. The state government should take them into confidence and arrive at a consensus to push through the law.”

Dr Avinash Bhondwe, past president of the Indian Medical Association, said, “The act is nothing but the backdoor entry of Inspector Raj. It has many impractical provisions such as displaying a rate card and employing more staff. This has been attempted at least four times since 2004. We had opposed it tooth and nail then and we will do it again.”