1 hr ago
Maharashtra official flags steep medical-device markups, seeks pricing oversight
A survey in Maharashtra looked at medical items used in hospitals.
It found that some items were bought very cheaply but charged to patients at much higher prices.
For example, an IV set bought for about ₹11 was billed at ₹325.
A catheter bought for about ₹29 had a printed price of ₹310.
Tukaram Mundhe said some markups reached 2,841%.
He said patients may not know whether these charges are fair.
He wants officials to review the prices and set clearer rules.
The National Pharmaceutical Pricing Authority is checking how these prices are formed.
Hospitals say rules should protect patients while still allowing them to pay for infrastructure and safety.
A Maharashtra survey found major gaps between private hospitals’ procurement prices and patient charges for surgical consumables.
IV infusion sets reportedly bought for ₹11.05 were billed at ₹325, while catheters bought for ₹29.41 had an MRP of ₹310.
Tukaram Mundhe said markups reached as high as 2,841% for products including IV sets, syringes, nebulisers and oxygen masks.
Mundhe urged margin rationalisation, inter-agency review and rules limiting the gap between procurement costs and printed MRPs.
The National Pharmaceutical Pricing Authority is examining pricing practices, while hospitals have called for regulation that also supports infrastructure and patient safety.
- Who
- Tukaram Mundhe, the National Pharmaceutical Pricing Authority, medical-device suppliers and private hospitals are involved.
- What
- A Maharashtra survey identified large differences between hospitals’ procurement prices and the prices or MRPs charged for medical consumables.
- Where
- The survey was conducted in Maharashtra, with similar representations reportedly received from Punjab, Rajasthan and Tamil Nadu.
- When
- Mundhe’s communication to the Department of Pharmaceuticals and the National Pharmaceutical Pricing Authority was dated August 10; the articles do not specify the survey date.
- Why
- Mundhe is seeking greater pricing oversight because many medical devices are outside direct statutory price ceilings and patients may bear unjustified costs.
Stricter pricing oversight
Balanced hospital regulation
Limits on markups
Stricter pricing oversight
Tukaram Mundhe argues that unusually large gaps between trade prices and printed MRPs require margin rationalisation and rules limiting permissible differences.
Balanced hospital regulation
Dr Aashish Chaudhry says hospitals need sufficient profitability to invest in infrastructure, technology and patient safety.
Patient protection
Stricter pricing oversight
Mundhe describes the issue as a patient-protection concern because patients often cannot determine whether hospital product charges are reasonable.
Balanced hospital regulation
Hospitals support transparency and protection from unjustified costs but call for a balanced regulatory approach rather than rules that undermine their financial capacity.
Key facts
- IV infusion set
- Procurement price: ₹11.05; patient billing: ₹325.
- Catheter
- Procurement price: ₹29.41; printed MRP: ₹310.
- Highest reported markup
- As high as 2,841% for some medical devices.
- Products examined
- IV infusion sets, syringes, nebulisers, oxygen masks and catheters.
- Regulatory concern
- Many hospital surgical consumables fall outside direct ceiling-price controls under the Drugs (Prices Control) Order, 2013.
- Proposed measures
- Margin rationalisation, an inter-agency review and guidelines on the gap between procurement costs and declared MRPs.
- Current review
- The National Pharmaceutical Pricing Authority is comparing company filings and internal price lists with the Maharashtra survey.
Quotes
Tukaram Mundhe
Official who led the Maharashtra survey and raised concerns about medical-device pricing
“Our survey has revealed an extraordinary disparity between the trade procurement price and the printed maximum retail prices (MRP) of medical devices used in inpatient care, reaching as high as 2,841% in some cases, including IV sets, syringes, nebulizers and oxygen mask products”
businesstoday.in
“There is a significant asymmetry of information in healthcare, with patients often unable to assess whether the price they are charged is reasonable. When a product procured at a low trade price carries an exceptionally high MRP, the patient ultimately bears the financial burden”
businesstoday.in
Sources
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