- Maharashtra FDA found hospital equipment markups up to 2,800 percent
- An IV set priced at Rs 11 was marked at Rs 325 in hospitals
- FDA urges transparency and regulation of trade pricing in medical supplies
Maharashtra FDA's Tukaram Mundhe called for more transparent trade pricing regulation after the organisation uncovered hospital pricing markups for essential equipment running up to 2,800%. He also stressed the importance of determining who is responsible for the markup and where in the pricing chain it occurs.
"This (pricing) gap running from 150% to 2,800% needs to be explained properly," Mundhe stated.
ALSO READ: Rs 11 IV Set, Rs 325 MRP: Tukaram Mundhe Flags How Medical Consumable Markups Inflate Hospital Bills
"The gap is not explainable at least to our minds, we also discussed and deliberated internally," he added.
In a post on X, Mundhe cited a survey of hospital consumables in Maharashtra that found an IV infusion set procured at a trade price of Rs 11.05 carrying a printed maximum retail price (MRP) of Rs 325, a markup of 2,841%.
Mundhe had said patients admitted for care have no way of knowing whether the price on a medical consumable reflects its actual cost or a markup fixed long before it reached the ward, calling this information gap "at its core, a public health issue".
"This gap running from 150% to 2,800% needs to be explained properly," Mundhe said.
"Now, if that product can be purchased by hospitals for Rs 11 and MRP is at Rs 325, there needs to be an explanation for that."
"That's where this markup issue had come up, that's where trade pricing regulations need to come up, that's where transparency needs to come in," Mundhe said.
Mundhe stated that the FDA has reported these findings to the National Pharmaceutical Pricing Authority (NPPA) to have it look into the issue transparently. He also said the issue likely concerns all stakeholders involved.
One consideration, according to him is whether such products should be brought under the Drugs (Prices Control) Order (DPCO), 2013, which is issued under the Essential Commodities Act, 1955.
He further said that another consideration is whether trade pricing regulations should be introduced, while the industry would also need to be consulted on what measures could be taken to address the issue, he said.
Mundhe also stressed the need for transparency among all stakeholders, including consumers, hospitals, manufacturers and regulators, saying the interests of all parties need to be protected transparently.
ALSO READ: A 2,800% Profit Margin? Maharashtra Vows Action Against 'Irrational' Medical Pricing
Mundhe said it was too early to deem this pricing discrepancy as systemic exploitation without the prerequisite consultations.
"Yes, there is a gap, whether it can be termed as systemic exploitation or not, will be able to be determined based on what NPPA comes out with once the consultations are there and the views of the stakeholders are taken into consideration," Mundhe said.
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