Healthcare is a critical and fast-expanding industry in Nepal, encompassing hospitals, clinics, diagnostic laboratories, pharmaceutical companies, medical device suppliers, and telemedicine providers. The sector has seen rapid growth due to technological advancements, increased private investment (including foreign investment in hospitals and medical colleges), and greater demand for quality health services among the population. The opportunities in healthcare are significant – with potential for high returns on well-run hospitals or specialized services – but the industry is also one of the most regulated because it directly affects public health and safety. Healthcare providers must obtain various licenses and approvals (hospital operation licenses, registrations for doctors and nurses with the Nepal Medical Council, pharmacy licenses, etc.), and they must comply with standards set by authorities like the Ministry of Health and Population and Department of Drug Administration. Patient care regulations, medical malpractice liabilities, health insurance and billing standards, and data privacy (for patient records) are all legal aspects that healthcare operators must manage. Additionally, frequent innovations (such as new medical equipment or treatment methods) and changes in healthcare policies (like the expansion of national health insurance programs) mean that the legal landscape is continually evolving.

Gandhi & Associates has a strong practice in healthcare law, providing counsel to healthcare institutions, investors, and allied service providers. We assist in the establishment and expansion of hospitals and clinics, advising on the optimal corporate structure (for-profit vs. not-for-profit, joint ventures, etc.), obtaining necessary healthcare facility licenses, and meeting infrastructure and staffing requirements mandated by law. Our team has experience in healthcare M&A and joint ventures, having advised on the acquisition of hospitals and diagnostic centers, and bringing our expertise in due diligence, valuation issues related to healthcare assets, and regulatory consents (including approvals from the Ministry of Health or local health authorities for ownership changes). We also advise on healthcare contracts – such as agreements between hospitals and doctors, service agreements for outsourced laboratory or imaging services, and contracts with medical equipment suppliers – ensuring they align with legal requirements and protect our clients’ interests. On the compliance front, we counsel clients on adhering to public health regulations, including waste management rules, patient safety and consent protocols, and insurance claim procedures (important for hospitals dealing with both private insurers and government health insurance schemes). Gandhi & Associates is also active in resolving healthcare disputes: we have represented hospitals in malpractice litigation and settlement negotiations, advised on resolving insurance reimbursement disputes, and assisted in mediating conflicts among stakeholders (for example, between hospital management and medical staff or between joint venture partners in a healthcare venture). By combining legal expertise with a deep understanding of the medical industry’s sensitivities, we help our healthcare clients innovate and grow while maintaining compliance and managing risk.

Representative Experience:

• Advised a Middle Eastern investment group on the acquisition of a leading multi-specialty hospital in Kathmandu. Our team conducted legal due diligence, structured the transaction to comply with foreign investment and healthcare regulations, and obtained necessary regulatory approvals for a high-value cross-border deal;
• Advised a premier private hospital in Kathmandu on a range of operational legal issues, including agreements with medical consultants, reimbursement arrangements with insurance companies, and dispute resolution related to insurance claims and service contracts;
• Assisted international healthcare service providers – including dialysis and diagnostic laboratory operators – in entering the Nepali market through branding and service partnerships with local hospitals and clinics, ensuring regulatory compliance and quality assurance;
• Advised a mid-sized private hospital in Kathmandu on health sector regulatory compliance for expansion, including permits, labor contracts for medical personnel, and legal frameworks for waste disposal and patient data protection; and
• Represented a foreign private equity investor in connection with a dispute involving its investment in a Kathmandu-based hospital. Our role included conducting legal due diligence, evaluating regulatory and financial risk, and negotiating a structured exit that preserved continuity of patient services.