Government Probes Hospital Billing Practices
The Indian government has initiated consultations with private hospitals regarding their billing practices and the pricing of surgical consumables. This move comes after state regulators flagged significant discrepancies between the procurement costs of these items and the maximum retail prices charged to patients.
Wide Price Gaps Reported
A survey conducted by a state government found that some surgical consumables and medical devices were being sold at markups of as high as 2,841% over their trade procurement prices. Regulators in Punjab, Rajasthan, and Tamil Nadu have also raised concerns about high margins on these items.
Products Under Scrutiny
The products being examined include IV sets, syringes, catheters, cannula extension lines, nebuliser oxygen masks, and filters. These items are not directly subject to ceiling prices under the Drugs (Prices Control) Order, 2013.
Hospital Representatives Cite Complexities
Hospital representatives told the Department of Pharmaceuticals that the difference between procurement prices and printed maximum retail prices (MRPs) should not be considered as the hospitals' realised margin. They pointed to complexities such as package-based insurance billing and costs associated with infection control, nursing, sterile storage, inventory, and wastage.
Next Steps
The Maharashtra government has announced a comprehensive inquiry and action against excessive pricing. The Department of Pharmaceuticals will continue its consultations with hospital operators and state regulators to address these concerns.