Last Updated on December 31, 2023 by The Health Master
Pricing of Medical Devices and Surgical Products
In recent times, the All Kerala Chemists and Druggists Association (AKCDA) has taken a significant step towards advocating a uniform price system for all surgical instruments and medical devices sold through private medical stores and hospital pharmacies.
They believe that the current pricing system is flawed and leads to unjustified price disparities between hospitals and retail medical stores.
To address this issue, they are urging the Union health ministry to intervene and regulate the prices of medical devices and surgical products, bringing them under the purview of the Drug Price Control Order (DPCO).
The Price Disparity
The AKCDA has observed a substantial discrepancy in the prices of surgical products sold at retail medical stores versus those sold at hospital pharmacies.
The hospitals tend to charge the Maximum Retail Prices (MRPs) for these products, while retail chemists offer the same items at significantly lower rates.
This disparity arises because manufacturers supply the products to distributors at lower rates than the MRP and hospitals charge the full MRP from patients without reducing the cost.
Implications on Healthcare Centers and Patients
The generous margins given to private healthcare centers by manufacturers have resulted in substantial profits for them.
These centers are capitalizing on the sale of decontrolled medical devices and surgical products.
Consequently, the AKCDA believes that the National Pharmaceutical Pricing Authority (NPPA) should address this issue urgently and implement measures to regulate the sale of these products by bringing them under the purview of the DPCO.
By doing so, a ceiling price can be fixed for medical and surgical items, ensuring more equitable pricing for patients.
AKCDA’s Appeal to the Union Health Ministry
The AKCDA, led by its General Secretary, ML Jayaraj, has written letters to both the Union health minister and the NPPA chairman, urging them to carefully consider the issue.
They propose that fixing a ceiling price for medical device and surgical items can be achieved through orders under the Essential Commodities Act 1955.
Special Meeting for Wholesalers
To sensitize wholesalers about the gravity of the problem, the AKCDA plans to conduct a special meeting. This move aims to bring all stakeholders on board and foster a more collaborative approach in addressing the pricing issue.
Government Response
Suman Kumar Tiwari, the joint drug controller of the Jharkhand drug control department, who oversees the medical devices industry in the state, has informed that the Union government will discuss the matter in the parliament.
The plan is to categorize medical devices into controlled and decontrolled classes, which will include all surgical instruments and products. Tiwari has forwarded a list of devices to the NPPA for further consideration.
However, Tiwari acknowledges that the Indian medical devices manufacturing industry is fragmented, and a significant portion of medical devices is imported from China and the UK.
As only 30% of medical devices used in India are domestically manufactured, it may not be feasible to bring all devices under the purview of the DPCO at this moment.
He suggests that once India achieves a certain level of self-sufficiency in medical device production, the demand to bring all products under NPPA control can be revisited.
Expert Opinion on Ceiling Prices
M Sivabalan, the former state regulator of drugs in Tamil Nadu, shares his perspective on the practicality of fixing ceiling prices for all medical devices and surgical products.
He believes that due to various technical issues and challenges in the manufacturing industry, it may not be feasible to enforce uniform prices across the board.
While traders may demand it, the industry’s capacity to support such measures remains doubtful.
Unjustified Pricing in Hospitals
Valiyakath Anvar, the treasurer of AKCDA, provides concrete examples of the glaring pricing discrepancies. He cites instances where hospitals charge exorbitant prices for medical devices compared to retail medical stores.
For instance, a urine collecting bag priced at Rs. 20 is sold at hospitals for Rs. 150, while an IV infusion set priced at Rs. 120 is sold by retail chemists for less than Rs. 30.
Uniform Pricing for Better Patient Outcomes
Sujith Kumar, the Kerala drug controller, argues that the prevailing pricing system is not beneficial to patients, especially those from financially vulnerable backgrounds.
He stresses the necessity of implementing a uniform price system for all medical devices and surgical products, regardless of whether they are sold in hospitals or private enterprises.
Conclusion
The price disparity between medical devices and surgical products sold in hospitals and retail medical stores is a significant issue that needs to be addressed urgently.
The AKCDA’s call for a uniform pricing system through the DPCO has brought this concern to the forefront.
While there are challenges in implementing a blanket ceiling price for all devices, it is crucial to find a balanced solution that ensures fair and affordable healthcare for all patients.
The Union health ministry, NPPA, and other stakeholders must collaborate to strike a balance between the interests of the medical industry and the welfare of patients.
A thoughtful approach and careful consideration of all aspects are essential to foster a more equitable healthcare system in the country.
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