Syringe makers cap margin after a poke

The National Pharmaceutical Pricing Authority is looking at prices of other medical consumables.

Medical devices like syringes fetch huge margines, from 50 to 173 per cent, according to the Union health ministry. This has brought bills in corporate hospitals under scrutiny, amid a demand to check the prices on medical devices.

A senior health officer on condition of anonymity said, “Corporate hospitals say they use the best products, most of them imported or assembled with imported parts. While that may be true, the prices are definitely not what they should be. There is no way to vet each and every device.”

The All India Syringes and Needles Manufacturers Association has agreed to cap trade margins at 75 per cent by January 26. This came after the National Pharmaceutical Pricing Authority warned that it would place a ceiling on the prices of syringes and needles. Importers and wholesalers who assemble imported units are yet to give their consent on the price cap.

The NPPA is also studying the margins built into the prices of medical consumables, disposables and implants.

Dr K.K. Aggarwal, president of Indian Medical Association, said, “Hospitals are procuring at the MRP mentioned by the manufacturer. When the MRP is high how can the consumables be charged less? At the same time, hospitals will have to streamline their pricing.”

A senior doctor said the pricing in government hospitals is different as quality audit is regularly carried out in the private sector. “Once a patient is in the intensive care unit and under critical care, costs will see a rise. If the stay in the ICU is longer, the cost increases rapidly. The patient’s family is very clearly told from day one and it is for them to decide whether they want hospital or home care,” he said.