TRADE MARGIN MAY HIT QUALITY OF MEDICINES

Trade margin rationalisation has become a major bone of contention with the public health experts insisting that it will reduce the cost by 73 per cent but hospitals and medical device importers have stated that India will be a place for low quality medical products.

Rationalisation of trade margins are on the cards and the government insists that scientific methods will be followed to excessively mark-up, make it affordable and also create a climate for innovation so that the needs of Indian society will be met.

The Department of Pharmaceuticals has stated in its report that high margins are enjoyed by distributors, hospitals and realtors. The margin escalation is largely between the price at the hospital and the price at which the hospital charges the patient. The solution being offered by the Department of Pharmaceuticals is rationalising these margins and bringing in transparency.

Hospitals have critisised this move as they state that it has to be implemented in the right way where quality and innovation will also be given consideration. Lowering the prices to affordable rates is accepted but it must not be at the cost of reducing the quality of devices which will in turn affect patient care tremendously.

HOSPITALS state that it has to be implemented in the right way where quality and innovation will also be given consideration.