Yes, it is highly essential for the government to regulate the fee structure in education and health care institutions.

Education and health care services create both private and social benefits, which is why both private and public institutions exist in these markets. However, expenditures on these sectors make a substantial long-term impact and cannot be easily reversed. If a child is admitted to an institution where required services are not provided, substantial damage is done before the decision to shift them is taken.

Moreover, individual consumers of these services do not have complete information about the quality of services and their costs. In this situation, the providers of education and health services acquire monopoly power and are involved in exploitation.

Therefore, the role of the government is to ensure that the private providers of these services adhere to the standards stipulated by the government and charge the correct price. Furthermore, when basic education and health care is considered as a right of the citizens, it is essential that the government should provide these services free of cost for the deserving citizens and those from the socially oppressed classes.