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Maharashtra FDA Flags Huge Markups on Hospital Consumables

Maharashtra FDA Flags Huge Markups on Hospital Consumables
Product Of Rs 11, Billed At Rs 325: Tukaram Mundhe Flags Huge Pricing Gap In Hospitals · news18.com

A government official in Maharashtra found that some hospital supplies may have much higher printed prices than the prices hospitals pay.

For example, an IV set bought for Rs 11.05 had an MRP of Rs 325.

A syringe and catheter also had much higher MRPs than their purchase prices.

Patients usually cannot shop around or compare prices while receiving urgent medical care.

Tukaram Mundhe said this makes it difficult for patients to know whether they are paying a fair amount.

He asked national authorities to examine the findings.

He also suggested rules for how large the difference between purchase prices and MRPs should be.

Some medical products already have price controls, but many consumables do not have one common price ceiling.

A hospital industry representative said regulation should improve transparency without hurting hospitals’ ability to fund staff, equipment, and patient safety.

Key facts

Highest reported markup
2,841% on an IV infusion set
IV infusion set
Procurement price Rs 11.05; MRP Rs 325
Syringe
Procurement price Rs 6.75; MRP Rs 57.20
Catheter
Procurement price Rs 29.41; MRP Rs 310
Proposed response
Review of findings, permissible-margin guidelines, and possible price monitoring or caps
Existing framework
The Drugs (Prices Control) Order, 2013, sets ceiling prices for scheduled formulations and specified medical devices
Non-scheduled products
Paragraph 20 limits MRP increases to 10% over 12 months but does not create a uniform ceiling for every device or consumable

Quotes

Tukaram Mundhe

Maharashtra Food and Drug Administration chief and IAS officer

“The most expensive part of a hospital bill may never touch the hospital at all.”
thestatesman.com
“These are not elective purchases.”
thestatesman.com

Sources

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