Don't want to miss the best from Business Standard?
The Alliance of Doctors for Ethical Healthcare (ADEH) has sought a cap on the prices of 'orthopaedic implants', alleging "wanton loot" by several implant manufacturers in connivance with some doctors and hospitals.
A delegation of the 'alliance' led by its core committee members Dr G S Grewal and Dr Arun Mitra met the chairman of the National Pharmaceutical Pricing Authority (NPPA) here today.
They apprised him about the alleged loot resorted to by several implant manufacturers in connivance with some doctors and hospitals.
The doctors explained how the nexus was resorting to "wanton loot" by inflating the MRP prices while giving these to the hospitals at a far less price. The hospitals in turn charge the unsuspecting patients the MRP and share the extra profit which is quite substantial with the manufacturers and the suppliers.
"The implants or drugs have no label of hospital prices on them. It has only one label -- MRP. This difference is used either by the retailer or by the professional for making profit.
"In some cases, some influential patients may be given discount up to 10 per cent but still the profit margin is very high. This is in a way excess charge levied on the patient," Dr Grewal said.
The doctors proposed that the price of the implants used in health care should be calculated as per cost accountancy only. No other method can lead to justifiable fixation of prices of drugs.
They said, the profit margin on the cost thus calculated should not be more than 10 per cent for the wholesaler and 20 per cent for the retailer which is already in practice. No other profit should be given to the health care provider facility.
The difference between the actual price of the drugs and the MRP should not be more than 20 per cent while at present it is up to 700-800 per cent in some cases. They said.
Disclaimer: No Business Standard Journalist was involved in creation of this content
