You are here: Home » Current Affairs » News » National
Business Standard

Dengue death case: No violation of drug price control norms, claims Fortis

The statement comes a day after the NPPA said the hospital charged as high as 1,700% margin on consumables and medicines used for treatment

Press Trust of India  |  New Delhi 

Fortis Hospital
Fortis Hospital

There has been "no violation" of drug price control norms in connection with the treatment of a 7-year-old dengue patient, who subsequently died, at the Fortis Hospital in Gurgaon, the hospital group said on Saturday. The Fortis Healthcare, in a statement, said it does not charge any drug or consumables above the (MRP). The statement from the group comes a day after the (NPPA) said the Gurgaon-based hospital charged as high as 1,700 per cent margin on consumables and medicines used for the treatment of the girl. The (FMRI) charged a margin of up to 1,737 per cent on procurement price on a three-way stopcock, the regulator said. ALSO READ: Dengue death case: Fortis Hospital overcharged family by 1,700%, says NPPA The procurement price of the consumable per unit stood at Rs 5.77, while the hospital charged Rs 106 per unit for the product, it added. The consumables listed by the NPPA included items such as syringes, gloves, and towels among others. The Fortis Healthcare, however, claimed that there had been "no violation of the Drug Price Control Orders". The family of the girl had last month alleged that they were overcharged by FMRI, with the bill amounting to around Rs 16 lakh.

The incident had sparked outrage, with the Haryana government forming a probe team after Union Minister J P Nadda sought a report from the hospital. ALSO READ: Trouble for Gurgaon Fortis after 7-yr-old dies of dengue The three-member committee, probing the circumstances under which the girl died in September, in a report submitted to the state government earlier this month had found "several irregularities", including protocols not being followed by the hospital in the case. The hospital had refuted allegations that it had overcharged the family, claiming the patient's kin was informed about the bill amount on a daily basis. "It should also be noted that our (Fortis) end price to the patient is very much in line with what other private hospitals in India charge. Looking at individual prices of any single item as a stand-alone takes the margin/profit topic out of context," the hospital group said in the statement. To understand the total profit scenario and overall business performance, one should look at the financial margins for the Fortis Hospital business, it said. "As such, it should be noted that the Fortis Hospital business reported operating profit (EBITDA -- Earnings before interest, tax, depreciation, and amortisation) over the last four published quarters, of 5 to 6 per cent, and a negative PAT (profit after tax) for the same period of time," the hospital group added.

First Published: Sat, December 16 2017. 16:49 IST