Karnataka High Court: Hospital Name Change Cannot Block Medical Reimbursement

Patients’ Rights Protected

The Karnataka High Court has ruled that a hospital changing its name cannot be a reason to deny medical reimbursement claims, as long as the hospital remains the same legal entity. The judgment, delivered on September 17, 2025, by Justice Suraj Govindaraj of the Dharwad Bench, reinforces that administrative oversights should not prevent patients from accessing funds for treatment.

A Name Change doesn't Mean No Existence

The case involved Dr. Shivanandappa Doddagoudar, an associate professor at a government college in Haveri, who had filed a petition after his reimbursement claim was denied. His medical reimbursement claim of over ₹13.95 lakh had been rejected by the Higher Education Department of Karnataka and the Suvarna Arogya Suraksha Trust. The denial was based on the hospital where he received treatment not appearing on the approved list of private hospitals eligible for reimbursement.

However, the hospital, originally Kasturba Medical College Hospital in Manipal, had changed its name to Kasturba Hospital in 2021. The change had not been reflected in the government’s official list of recognized hospitals. The petitioner’s counsel argued that the legal identity of the hospital had not changed under the Karnataka Private Medical Establishments Act, 2007, and therefore, the claim denial was unjust.

Court’s Verdict

Justice Suraj Govindaraj of the Dharwad bench noted, “It is evident that if treatment is availed from an unrecognised hospital, reimbursement is not permissible. However, in the present case… the authorities have failed to update the name, resulting in rejection of reimbursement claims. The hospital remains the same legal entity, and the name change was duly recorded under the Karnataka Private Medical Establishments Act.”

The Karnataka High Court added, “The respondent authorities were obligated to verify the request and update the recognized list after following the due procedure. Their failure to do so cannot prejudice the petitioner.”

The court quashed the previous orders passed by the Higher Education Department and the Suvarna Arogya Suraksha Trust and directed them to reconsider Dr. Doddagoudar’s claim within six weeks.

Keeping Records Up-to-Date Matters

This Karnataka High Court ruling underscores the importance of keeping administrative records current. Hospitals and government authorities must ensure that changes, such as name alterations, are promptly updated to avoid delaying or denying rightful claims.

The verdict protects patients from unnecessary hurdles and highlights that procedural errors should never compromise access to healthcare benefits. By enforcing accountability, the court ensures that reimbursement processes are fair, transparent, and in the patient’s best interest.

(Rh/Eth/ARC/MSM)