Medical Devices Profiteering
I have reason to believe that there is huge profiteering being done by hospitals and vendor-doctor nexus.
Can something be done to get these to become more affordable for common people?
Price capping? Trade Margin Capping? Something.
Are MRPs being checkef by consumer affairs dept on such devices? more
The prices of defibrillators given therein are generally in thousands and not in lakhs of rupees.
May be the one costing 65 lakhs is something extraordinary. more
India is set to cap trade margins on medical devices, abandoning the current price control mechanism, as it seeks to curb profiteering as well as allay concerns of device makers, particularly importers of stents and knee implants, who have complained that price caps hurt innovation, two people aware of the matter said.
The govt of India is likely to accept think tank NITI Aayog’s recommendation to cap trade margin at 65% for medical devices, the people said on condition of anonymity.
According to NITI Aayog’s formula, the maximum retail price (MRP) of a device will be decided by adding the trade margin to the price at the first point of sale (stockist). The trade margin is the difference between the price at which the manufacturers/importers sell to stockists and the price charged to consumers.
., it was decided in a government meeting earlier that trade margins should start from the first point of sale.
“Many expenditures are incurred by the importing companies, including clinical education on deployment, and therefore trade margins should start from the first point of sale, that is the stockist," according to NITI Aayog’s consultation paper. Mint has reviewed a copy of the document
urrently, 23 medical devices have been notified as drugs and are regulated under the Drugs and Cosmetics Act. Of these, only four—cardiac stents, drug-eluting stents, condoms and intra-uterine devices—are included in the National List of Essential Medicines and are, therefore, subject to notified price caps. Last year, knee implants were brought under price controlunder para 19 of the Drugs (Price Control) Order, 2013. The remaining medical devices are not under any form of price regulation.
Once the new mechanism of calculation trade margins is approved, it will be applicable on devices such as cardiac stents and knee implants, prices of which were slashed by as much as 85% using powers under the Drugs Price Control Order, 2013. more