One step ahead: Hospitals have managed to beat price cap on stents

With the National Pharmaceutical Pricing Authority (NPPA) reportedly receiving complaints that hospitals were hiking the prices of non-stent components in coronary care treatments after it had imposed price caps on stents, the government is posed with a fresh challenge.

The NPPA had capped stent prices after health activists began campaigning against the overpricing of stents by hospitals up to 300 per cent of the MRP. With the caps impacting profits, many hospitals have bumped up charges for other components of treatment like surgery charges.

In the end, whatever benefit patients would have accrued from capping stent prices has been undercut. Earlier this week, Chemicals and Fertilisers Minister Ananth Kumar had warned hospitals that investigation, procedure, and post-procedure costs that were in effect for the past three years should not be increased to offset the loss of earnings.

The NPPA must investigate the complaints and order refunds for those who have been overcharged. At the industry end, two companies have withdrawn their latest stents citing “commercial unviability post fixation of ceiling price”. However, the NPPA has heeded expert opinion and ruled that all drug-eluting stents are the same, while fixing the prices of drug-eluting and biodegradable stents at Rs 29,600 each.

Profits are important for growth, but it cannot become profiteering at the expense of patients. Public interest is paramount. Blaming the government for hindering the free play of market forces holds no water.