Nepal’s Consumer Court vs. Doctors and Hospitals: A Legal Shake-Up That Could Put Healthcare at Risk

 Nepal is at a turning point. The recent creation of a consumer court with the power to hear medical malpractice cases has been widely praised as a major step forward for patient rights. However, while the intention is good, some of the court’s decisions could have unintended consequences for the country’s already fragile healthcare system.

Doctors and hospitals are feeling growing pressure from increasing legal scrutiny, which has led to fear, overly cautious medical practices, and concerns that healthcare professionals may start leaving the country. This could ultimately harm the very patients the court is trying to protect.

The Consumer Court’s Debut and Its Impact

The consumer court began operating on March 15, 2025, under the Consumer Protection Act of 2018. It was created to provide quick justice to consumers, including patients. In just three months, it has handled several major medical negligence cases that have shaken Nepal’s healthcare sector.

One high-profile case involved Om Hospital and Research Centre in Kathmandu. Basanta Gautam claimed his 98-year-old father, Harihar Prasad Gautam, died due to the hospital’s negligence. The court found that the doctors discharged him with only painkillers and did not perform necessary imaging or admit him for observation—despite clear signs of serious pelvic pain and immobility. The hospital was ordered to pay Rs 5.68 million in compensation, a significant sum in Nepal, where many doctors earn salaries similar to government officers.

In another case, Nepalgunj Medical College was fined Rs 2.6 million after a patient named Manital Shrestha died from errors allegedly made by unsupervised medical students. The court ruled that the institution failed to provide proper oversight.

Frustration with the Nepal Medical Council (NMC)—which has been criticized for being slow and ineffective in addressing medical malpractice—has driven more patients to seek justice through the consumer court. As a result, the court is quickly becoming the preferred route for many.

Doctors Are Feeling the Pressure

While consumer rights groups have welcomed the court's actions, the medical community is alarmed. Doctors say the strict interpretations of “duty of care” and the heavy financial penalties are creating fear and uncertainty.

To protect themselves from lawsuits, many doctors are now practicing “defensive medicine”—ordering excessive tests, avoiding complex procedures, and documenting everything in detail. This increases healthcare costs and can delay treatment, potentially harming patients rather than helping them.

Medical Training and Staffing at Risk

The ruling against Nepalgunj Medical College has made medical educators wary. Many now hesitate to let students get hands-on experience, fearing legal trouble if anything goes wrong. This hurts the training of future doctors.

Young doctors are also growing more reluctant to work in rural or under-resourced areas, where the risks are higher and support is lacking. More and more Nepali doctors are choosing to work abroad in places like the U.S., U.K., and Australia instead.

Although Nepal has enough doctors to meet the World Health Organization’s recommended doctor-to-patient ratio, they are unevenly distributed. Few want to work in rural regions due to poor working conditions, low salaries, limited opportunities for career growth, and political interference. This makes it hard for people in remote areas to access quality healthcare.

Financial Pressure on Hospitals and Patients

Hospitals are also feeling the strain. Some are considering raising consultation fees or cutting back on high-risk services like emergency care or cancer treatment to avoid future lawsuits. Others are referring complicated cases to public hospitals that may not be equipped to handle them—putting more pressure on an already stretched healthcare system.

Although the Consumer Protection Act empowers patients, it doesn’t address the deep-rooted issues in Nepal’s health system. Many rural hospitals lack specialists and essential diagnostic tools like CT and MRI machines. Expecting them to meet international standards without proper resources is unrealistic.

Legal Burden and Limited Access

Doctors can now face three separate legal actions for the same case: disciplinary action from the NMC, civil lawsuits in consumer court, and even criminal investigations. This “triple jeopardy” causes severe stress, especially when medical records are poorly maintained, as they often are in rural areas—leading to unfair rulings.

Despite a Supreme Court order requiring consumer courts in all seven provinces, they currently operate only in Kathmandu, Bhaktapur, and Lalitpur. This means most citizens still don’t have access to the justice they’re entitled to.

Worse, growing legal tensions are leading to public anger and even violence against healthcare workers.

Finding the Right Balance

Nepal’s consumer court plays an important role in making the healthcare system more accountable. But if not balanced carefully, it could weaken the very system it aims to improve.

Reforms are needed. Legal changes should protect doctors who act in good faith, simplify NMC procedures, and expand court access. Hospitals should also be required to follow standard protocols, maintain better medical records, and invest in malpractice insurance to share risks fairly.

At the same time, patients need to be educated about realistic outcomes and the complexities of medical treatment. Clear communication between healthcare providers and patients can reduce misunderstandings and prevent disputes from escalating into lawsuits.