The ceiling prices have been fixed between Rs 54, 720 to Rs 1,13, 950 depending on the type of transplant and prices have been slashed by 59% to 69%
In what will provide relief to close to two crore patients every year, the National Pharmaceutical Pricing Authority (NPPA) has fixed a ceiling price on knee implants.
The government regulatory agency has fixed the ceiling prices between Rs 54,720 to Rs 1,13,950, depending on the type of transplant, and slashed prices by 59% to 69%.
The standard and most widely used complete knee implant will not cost more than Rs 54,720 now, down 65%. Earlier, it cost as much as Rs 1,58,324.
Special metal implants like that of titanium and oxidized zirconium — which earlier cost Rs 2,49,251 — will come down by 69% to Rs 76,600. High flexibility implants and revision implants for second surgery will come down from Rs 1,81,278 and Rs 2,76,869 to Rs 56, 490 and Rs 1,13, 950 respectively, down 69% and 59% respectively.
NPPA had studied that a knee implant costs a patient six times more than the minimal price at which an importer stocks it from manufacturing firms, shockingly, as high as over four lakh rupees.
In India between 1.5 to 2 crore patients, both diagnosed and undiagnosed, are estimated as having to take an arthroplasty intervention involving knee replacement. However, only one lakh patients are in a position to pay for it every year, mentions the order.
"It is noticed that orthopaedic-knee implants are having unjustified, unreasonable and irrational high trade margins leading to their exorbitant prices which affects the out of pocket expenses of patients and lakhs of patients are not able to pay for arthroplasty procedures because of these exorbitant prices and suffering in pain," the order states.
"Government is under Constitutional obligation to provide fair, reasonable and affordable price for orthopedic implants and therefore its immediate intervention is imperative to check unethical profiteering and exploitive pricing at the cost of the patients in an unregulated market," said NPPA Chairman Bhupendra Singh.
In case import prices for manufacturers are higher than the ceiling prices of the implants, the manufacturers can add a margin of not more than 30%.
For primary knee replacement system, the profit margin has been fixed at 4% to 8% for hospitals, nursing homes and clinics and 12% to 16% for distributors and stockists.
Buying knee implants was a rip off for patients as manufacturers, hospitals and stockists used to retain humungous profit margins before selling them to unsuspecting patients, who paid through their nose for the implants.
The importers, distributors and hospitals retain a total trade margin of as much as 313% before selling it to unsuspecting patients desperate for a knee implant, NPPA had observed. For example, the range of landing cost for a knee implant or the price at which an importer buys it from a manufacturer is between Rs 23,408 to Rs 65,781. The importer can retain a maximum of uptil 76% margin and sell it to a distributor or a hospital at prices between Rs 23,513 to Rs 1,67,162.
The distributors and hospitals retain upto 135% trade margins which leads the implant to be sold at between Rs 59,091 to up to as high as Rs 4,13,059. The MRP price of a knee implant are jacked up exorbitantly for the patient.
Also the order states that in case a patient is interested in procuring an implant from a third-party source, hospitals, nursing homes or clinics performing orthopaedic surgical procedures shall not solicit any patient to purchase knee implants from their set-ups.
2 CRORE PATIENTS TO GET RELIEF
- Most widely used complete knee implant will not cost more than Rs 54,720 now
- Earlier, it cost as much as Rs 1,58,324
- That is a whopping 65% cut from its earlier price
Type Avg MRP earlier Avg price reduction New ceiling price & MRP
Complete Rs 1,58,324 65% Rs 54, 720 + GST
knee implant
(Cobalt Chromium)
Special metal like Rs 2, 49, 251 69% Rs 76,600 + GST
Titanium and Oxidized
Zirconium
High flexibility implant Rs 1,81, 728 69% Rs 56, 490 + GST
Revision implant for
Second surgery Rs 2, 76, 869 59% Rs 1, 13, 950 + GST
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