Surge in Hospital Consumable Prices Prompts Regulatory Action
Maharashtra’s Food and Drugs Administration (FDA) has escalated a concern regarding the pricing of common hospital consumables, urging central authorities to intervene. Commissioner Tukaram Mundhe sent a communication on August 10 to the Department of Pharmaceuticals and the National Pharmaceutical Pricing Authority (NPPA), requesting a review of market survey findings that revealed extreme price discrepancies.
According to a report by Mint, the state survey identified markups of as much as 2,841 percent over procurement prices in certain cases. The investigation focused on products used in inpatient care, including intravenous (IV) infusion sets, syringes, nebulisers, oxygen masks, and catheters. The survey compared the costs at which private hospitals purchased these items with their printed Maximum Retail Prices (MRP) or the amounts ultimately billed to patients.
Significant Price Gaps Identified
The data cited in the report highlights stark contrasts between procurement costs and patient billing. For instance, the survey found that private hospitals purchased catheters for Rs 29.41 each, despite an MRP of Rs 310. Similarly, IV infusion sets procured at a cost of Rs 11.05 were billed to patients at Rs 325.
Mundhe described the situation as a "patient-protection issue" rather than merely a pricing anomaly. He noted that patients often lack the necessary information to verify whether the prices charged for hospital products are reasonable. In his communication, the Commissioner proposed capping trade margins or placing essential device categories under structured price monitoring.
Central Authorities Under Review
Two officials familiar with the matter told Mint that the NPPA is currently examining whether manufacturers and intermediaries are adding substantial margins before products reach patients. The authority is comparing company filings and internal price lists with the data from the Maharashtra survey.
This is not an isolated issue; officials stated that the NPPA has received similar representations from drug-control authorities in Punjab, Rajasthan, and Tamil Nadu. Under the Drugs (Prices Control) Order, 2013, the NPPA fixes ceiling prices for scheduled formulations and specified medical devices. For non-scheduled products, Paragraph 20 restricts MRP increases to 10% over a 12-month period. However, this mechanism monitors annual price hikes rather than prescribing a uniform ceiling price for every device category.
Industry Response and Regulatory History
Dr. Aashish Chaudhry, Managing Director of Aakash Healthcare, commented on the regulatory landscape, stating that while regulation should promote transparency and accountability, it must also allow hospitals to remain financially sustainable. He emphasized the need for hospitals to continue investing in infrastructure, technology, and patient safety.
The NPPA has previously imposed direct price controls on specific categories, including coronary stents and knee implant systems. During the Covid-19 pandemic, the regulator also utilized trade-margin rationalisation for oxygen concentrators and other commonly used devices.
Queries sent to the relevant Union ministries, the Department of Pharmaceuticals, NPPA, and the Central Drugs Standard Control Organisation had not received responses by the time of the original report's publication. State authorities cited in the report also remained unresponsive to queries.