Treating serious illnesses such as cancer is inherently an expensive process, and patients are forced to pay multiple sums for medications. The central government stated in its submission to the Supreme Court that hospitals charge excessively high prices for medicines and other consumables used in treatment, calling this practice incorrect. The government also announced its intention to take measures to limit this practice.
The central government informed the court that there is no equal bargaining position between patients and hospitals. Due to the necessity of treatment, patients are often forced to accept prices set by the hospital. In this regard, the government proposed limiting the trade markup on medications for rare cancers to 30 percent of the Maximum Retail Price (MRP). According to government estimates, this could lead to a reduction in drug prices by 20–70 percent, which is projected to save patients around 250 billion rupees annually.
Difficulties with pricing small medical goods
The government informed the Supreme Court that the cost of medical consumables used in hospitals ranges from 1 to 350 rupees and above. Establishing a single profit limit for all these goods appears to be a difficult task. Furthermore, the sale of inexpensive items also incurs costs, and setting a single limit may complicate covering these expenses.
Discussion of rules continues
The central government told the court that it is negotiating with all stakeholders to resolve this issue and is preparing to develop relevant regulations. The proposal to limit the trade markup on medications for rare cancers is a step in this direction, but for now, it is only a proposal. Real savings for patients and price reductions will only become apparent after this proposal is implemented.