The new analysis is a part of the ongoing initiative of the NPPA to flag irregular trade practices
If distrust in the medical sector is in the rise, this will give an indication why.
An analysis by the National Pharmaceutical Pricing Authority of trade margins in something as inexpensive as syringes has revealed margins ranging from 57% to 1251%. This means for a 5 ml standard hypodermic disposable syringe that costs the distributor Rs 2.31, the consumer pays Rs 13.08, sometimes more. NPPA has, since the controversy over the death of a seven-year-old dengue patient in Fortis Hospital Gurugram last year when the family was made to pay a bill of Rs 15 lakh, undertaken this exercise of analysing trade margins of various consumables in a bid to regulate the pricing of pharmaceutical products.
In its analysis that it made public on Tuesday, it has asked stakeholders to send in their comments on the pricing practices. In an earlier analysis the authority had found that 25% of the hospital bills in a private hospital comprises non-scheduled drugs.
While the new analysis will doubtless re-ignite the simmering discontent about the irregularities that plague the system of drawing up maximum retail prices in the medical sector, it will also give out a very important message of continuity in the apex price fixation body after its chairman Bhupendra Singh, perceived as somebody who was taking on the private sector, was recently transferred out.
In a statement soon after Singh’s tranfer on March 1, the All India Drug Action Network which is an organisation working towards transparency in the medical sector said: “We are deeply concerned about the manner and timing of the transfer of Mr. Bhupendra Singh, Chairman NPPA, a move which seriously impacts public interest particularly when measures are being taken to plug unethical profiteering. The NPPA under the governance of Mr. Injeti Srinivas and Mr. Singh showered tremendous leadership. Mr. Srinivas was transferred even before the completion of one year following the price regulation of critical cardiac and diabetes medicines through public interest of the DPCO. During his term, Mr. Singh has taken many positive steps to ensure affordability of medicines and medical devices that discomforted the industry.”
It added that NPPA undertook the landmark price control of stents and knee implants last year under the leadership of Singh. “There was greater accountability to the public because of increased transparency and responsiveness to grievances of patients and the industry.” the statement added.
