2 hrs ago
Maharashtra FDA Flags 2,800% Markups on Hospital Consumables
A Maharashtra regulator found that some hospitals may pay much less for medical supplies than the prices printed on them.
For example, an IV set reportedly cost a hospital Rs 11 but had an MRP of Rs 325.
The regulator said this difference, which can reach 2,800 per cent, needs a clear explanation.
The supplies include syringes, IV sets and nebulisers used during hospital treatment.
The regulator does not know whether manufacturers, distributors or hospitals keep the extra money.
It can act if a product is sold above its MRP, but not when it is sold at the printed MRP.
The issue has been sent to the National Pharmaceutical Pricing Authority for review.
The regulator also discussed notices sent to three actors over an advertisement allegedly promoting banned pan masala indirectly.
Maharashtra FDA Commissioner Tukaram Mundhe cited an example of an IV set bought for Rs 11 with an MRP of Rs 325.
The FDA found large gaps between hospital procurement prices and printed MRPs for syringes, IV sets and nebulisers.
Mundhe said the FDA cannot act when products are sold at or below their legal MRP, and has not determined who retains the difference.
The FDA asked the National Pharmaceutical Pricing Authority to consider placing hospital consumables under the Drugs (Prices Control) Order.
Mundhe said two of three actors issued show-cause notices over a Vimal Elaichi advertisement had replied, while proceedings would begin against the third.
- Who
- Maharashtra Food and Drug Administration Commissioner Tukaram Mundhe and the National Pharmaceutical Pricing Authority are central to the pricing review.
- What
- The FDA flagged large markups between hospital procurement prices and MRPs on medical consumables and recommended possible price control.
- Where
- The pricing data came from hospitals in the Mumbai Metropolitan Region and beyond; the notices were issued by the FDA's Greater Mumbai division.
- When
- Mundhe discussed the issue in an interview on Thursday; the advertisement notices were issued on August 11, and a related Delhi High Court petition was dismissed on September 14.
- Why
- The review began after complaints that hospitals were overcharging for essential treatment consumables.
Key facts
- Example markup
- An IV set was reportedly procured for Rs 11 and listed with an MRP of Rs 325.
- Maximum cited markup
- Up to 2,800 per cent.
- Products examined
- Syringes, IV sets and nebulisers.
- FDA authority
- The FDA can act when products are sold above MRP, but not when they are sold at the legal MRP.
- Recommended review
- The FDA asked the National Pharmaceutical Pricing Authority to consider price controls under the Drugs (Prices Control) Order.
- Advertisement notices
- Shah Rukh Khan, Ajay Devgn and Tiger Shroff received notices over alleged surrogate promotion of banned pan masala.
- Actor responses
- Two of the three actors had replied; proceedings were to begin against the actor who had not responded.
Quotes
Tukaram Mundhe
Maharashtra Food and Drug Administration Commissioner
“If that product can be purchased by a hospital at, say, Rs 11 and the MRP is at Rs 325, they need an explanation for that. The percentage difference, 2,800 per cent, is beyond comprehension on the face of it.”
NDTV
“If it is charging more than MRP, we can take action. We are authorised to do that. But if it is as per the MRP, we are not authorised to take any action, because it is as per the legal norms.”
NDTV
Sources
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