It is now mandatory for manufacturers of 22 listed medical devices to print the MRP on their packaging
The move by National Pharmaceutical Pricing Authority (NPPA) making it mandatory for manufacturers of medical devices to print the MRP rates on the packaging of items classified as 'drugs' has met with approval by health activists and doctors. NPPA has released a list that includes syringes, catheters, needles, surgical dressings, orthopaedic implants, prosthetic replacements, condoms, and blood component bags among others. The move comes just weeks after the NPPA slashed the prices of cardiac stents by around 85 per cent.
"We had met the NPPA authorities and raised the issue of other medical devices. This move will restrict 'super-profiteering' in the hospitals," said Dr Abhay Shukla, who is associated with the Alliance of Doctors for Ethical Healthcare (ADEH) and Jan Swasthya Abhiyan (JSA). "There is a rider though. The hospitals could hike the prices of the procedures to compensate for the prices," he cautioned.
The new memorandum of the NPPA only makes it mandatory for the MRPs to be displayed on the packaging — it does not set a price as was done in the case of the stents.
"The MRPs of devices include cost price as well as a profit margin, while the hospital receives the devices at cost price. In the case of absolutely life-saving drugs, the hospitals could be asked to provide the devices to patients at cost price while other devices could be given with 10 per cent profit margin," suggested Dr Sanjay Oak, former dean of KEM Hospital, and CEO, Prince Aly Khan Hospital.
The manufacturing industry though is not very happy with the move as they feel the entire industry is paying the price for malpractices of a few. "The issue of overpricing in stents was an extraordinary case. Most medical devices already carry MRP stickers," said Dr G Velu, Joint Coordinator, Association of Indian Medical Device Industry (AiMeD). "The government is talking about control without self-reliance. The domestic manufacturing industry should be promoted and the private healthcare sector should be allowed to innovate."
"This move will help bring in transparency," opined Dr Avinash Supe, dean, KEM Hospital.
Manufacturers feel that the authorities are moving fast without stopping to understand the industry well. "They should not act in a hurry without understanding the set-up. They are making things too bureaucratic," said Dr Velu.
32 hospitals under nppa radar
NPPA is currently seeking replies from 32 hospitals after receiving complaints from patients about over-charging for cardiac stents. Apart from prominent hospitals in Mumbai and Delhi, the list also includes hospitals from Tier-2 cities like Mangaluru, Bhatinda, Gwalior, Allahabad, Jalandar, Hyderabad, and Mysuru, pointing to the widespread nature of the malpractice. The hospitals have been asked to send written replies to the NPPA.
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