MUMBAI: Maharashtra Food and Drugs Administration (FDA) Commissioner Tukaram Mundhe has called for a review of pricing practices for commonly used medical devices after a state survey found significant differences between hospital procurement prices and the prices charged to patients.
According to a report by Mint, the survey identified markups of up to 2,841% on certain hospital consumables, raising questions about pricing transparency and trade margins across frequently used medical devices.
In an August 10 communication to the Department of Pharmaceuticals and the National Pharmaceutical Pricing Authority (NPPA), Mundhe sought a review of the survey findings and appropriate regulatory measures. The proposals reportedly include rationalising trade margins and considering structured price monitoring or price controls for essential categories of medical devices.
The communication, titled “Market Survey Report of Purchase and Sale Price Variations in Medical Devices (Surgical Items Used in IPD),” examined products commonly used in inpatient care.
Wide Gap Between Procurement Costs and Patient Billing
The survey compared the prices paid by private hospitals to procure selected medical consumables with their printed maximum retail prices (MRPs) or the amounts subsequently billed to patients.
Among the products examined were intravenous (IV) infusion sets, syringes, nebulisers, oxygen masks and catheters.
According to figures cited by Mint, private hospitals procured catheters at an average price of Rs 29.41 per unit, while the products carried an MRP of Rs 310.
The disparity was even more pronounced for IV infusion sets. Products procured for approximately Rs 11.05 were reportedly billed to patients at Rs 325.
Mundhe told Mint that the difference between procurement prices and declared MRPs reached as high as 2,841% in some instances. He has called for margin rationalisation, an inter-agency review and clearer guidelines governing the relationship between procurement costs, trade margins and declared MRPs.
Regulatory Review of Medical Device Pricing
The issue also brings renewed attention to the regulatory framework governing medical-device prices in India.
The National Pharmaceutical Pricing Authority (NPPA) regulates ceiling prices for scheduled formulations and certain specified medical devices under the Drugs (Prices Control) Order, 2013. For non-scheduled products, Paragraph 20 provides for monitoring of MRP increases, limiting increases to 10% over the preceding 12 months.
However, the mechanism primarily addresses permissible annual MRP increases and does not establish a uniform ceiling price across every category of medical device.
The NPPA has previously introduced direct price controls for selected medical devices, including coronary stents and knee implants. During the COVID-19 pandemic, the regulator also adopted trade-margin rationalisation for oxygen concentrators and other medical devices.
The Maharashtra FDA’s latest findings could therefore prompt further discussion about whether existing pricing mechanisms adequately address substantial differences between procurement costs and patient-facing prices.
Implications for Patients and Hospitals
Medical consumables such as IV sets, syringes, catheters and oxygen masks are routinely used in hospitals, making their pricing particularly relevant to inpatient healthcare costs.
Large differences between procurement prices and patient billing can contribute to higher hospital expenses for patients, particularly when multiple consumables are used during a single admission.
Mundhe’s communication has consequently placed the issue before central pricing authorities for consideration, with the proposed measures focused on greater transparency, margin rationalisation and potentially stronger monitoring of essential medical-device categories.
The development adds to wider discussions around healthcare affordability and the need to balance the commercial interests of manufacturers, distributors and healthcare providers with patients’ access to reasonably priced medical products.
