The government will constitute a four-member committee headed by the health department principal secretary to prepare a draft bill for consideration by the state assembly, he said.
The committee will comprise the health department director, director of medical education and managing director of the Kerala Medical Services Corporation Ltd (KMSCL), besides the principal secretary as its chairman, he said in a statement.
The panel will consult private hospitals and other stakeholders and make recommendations to reduce treatment costs and improve the quality and transparency of healthcare, patient safety and availability of services, according to the minister.
It will examine treatment costs in private hospitals, including prices of medicines, diagnostic tests, room rent and charges for various procedures and interventions, he said.
"Some hospitals are excessively exploiting poor people," Muraleedharan said, adding that several people approach the government seeking assistance after receiving unaffordable bills from private hospitals.
Such "excessive commercialisation" of healthcare cannot be accepted, he said.
