Study reveals significant difference between procurement price and retail price of medical consumables in Maharashtra hospitals
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Aaj Tak
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Study reveals significant difference between procurement price and retail price of medical consumables in Maharashtra hospitals

The primary concern for patients and their families during hospital treatment is often related to rising bills. Consequently, a serious question has arisen regarding the prices of certain medical goods included in these bills. An examination of the prices of medical consumables used in Maharashtra hospitals revealed a substantial gap between the trade price and the Maximum Retail Price (MRP).

Tukaram Mundhe, head of the Maharashtra Food and Drug Administration (FDA), shared data from this survey via social media. According to him, a significant discrepancy was found between the procurement cost and the MRP of many medical products used in hospitals. For instance, an IV infusion set purchased for ₹11.05 had an MRP of ₹325. Similarly, a syringe costing ₹6.75 had an MRP of ₹57.20, and a catheter with a trade price of ₹29.41 was noted with an MRP of ₹310. Thus, in some cases, the difference between the trade price and the MRP was several times greater.

In Tukaram Mundhe's opinion, the main problem is that these products are those that a patient cannot easily avoid during treatment. A hospitalized patient may require IV sets, syringes, catheters, and other consumables. In such circumstances, the patient has no opportunity to compare prices or switch to an alternative option mid-treatment. As a result, the patient often does not know the real cost of the product being used in their treatment.

Tukaram Mundhe also noted that the MRP on medical goods is sometimes set in advance by manufacturers and distributors, and this price can differ significantly from the trade price at which the item is purchased. This creates a large gap between the trade price and the MRP. The problem is that the paying patient cannot easily understand or assess this difference. This raises questions about transparency: what was the actual procurement cost of the product, and how much was charged to the patient for it?

The Commissioner of the Maharashtra FDA, Tukaram Mundhe, raised questions about the existing regulatory system concerning the prices of medical goods. Although there is a price ceiling provision for regulated drugs under the Drugs Price Control Order 2013, according to Mundhe, most medical devices and consumables do not fall under direct price control. This necessitates a clear system defining what gap between the price of these products and their MRP is acceptable.

It was recommended to analyze the results of the survey presented by the Maharashtra FDA. Furthermore, it was proposed to develop clear guidelines regarding the permissible gap between the procurement price and the stated MRP. This recommendation was sent to the Department of Pharmaceuticals and the National Pharmaceutical Pricing Authority (NPPA). The goal is to reduce the potential price and information gap in the cost of medical consumables.

For patients, this means that it is not always easy to determine the real procurement price of a medical product included in a hospital bill just by looking at its MRP. The findings of the Maharashtra FDA survey show that in some cases, the difference between the trade price and the MRP can be very large. It remains to be seen what steps central agencies and the NPPA will take in response to the FDA's recommendations.

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