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Lahore High Court declares healthcare a public right, caps private labs’ profit at 20%

LAHORE: In a landmark judgment, the Lahore High Court (LHC) has ruled that healthcare is not a commercial product but a fundamental human right — and set a 20% profit limit for private laboratories and healthcare service providers across Punjab.

The decision came after a series of petitions by private hospitals and diagnostic centers, including Shaukat Khanum Memorial Trust, challenging the Punjab Healthcare Commission’s (PHC) authority to regulate medical service prices. The court dismissed the petitions, declaring that the PHC has full legal power to fix and monitor prices of private health services in the province.

According to the court’s order, the actual cost of each medical service will be determined by a chartered or cost accountancy firm, while the final approval of service charges will rest with the Punjab Healthcare Commission.

Justice Shahid Karim observed that the right to health is directly linked to the right to life, which cannot be left to market forces or unchecked profiteering. The judgment emphasized that excessive commercial gain in healthcare violates the spirit of constitutional protection of citizens’ welfare.

With this ruling, private hospitals, laboratories, and diagnostic centers in Punjab will no longer be allowed to charge more than 20% profit over their verified costs. The decision aims to make essential health services more affordable and transparent, ensuring fair pricing for patients across the province.

The LHC’s judgment is being hailed as a breakthrough for public health rights in Pakistan, establishing that access to medical care is a social obligation — not a business venture.

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