New Delhi: The Association of Healthcare Providers of India (AHPI) has called for a balanced approach to pricing of drugs and consumables, adding that a uniform 16 per cent margin on all drugs could make some products commercially unattractive to stock.
This comes after the Supreme Court’s recent remarks over steep markups of nearly ten times on cancer drugs by hospitals and suggestion for a uniform 16 per cent margin on all medicines.
AHPI said that while fixing a uniform margin can improve transparency and affordability, it should not be treated as a one-size-fits-all solution.
It argued that medicines have very different supply-chain requirements and that a fast-moving chronic medicine, a low-volume lifesaving drug, a cold-chain product and a high-cost specialty medicine cannot necessarily operate on the same economics.
With respect to the cost of medicines undertaken by the patients, AHPI said that “hospitals receive a bundled payment (package) from patients through private insurance and government schemes, with no provision of charging separately for medicines or consumables.”
“For patients coming otherwise, the hospitals and even retailers generally dispense drugs at the Maximum Retail Price (MRP) printed by the manufacturer, subject to applicable regulations. The MRP is determined by the manufacturer and is not independently fixed by hospitals.”
It added that the price of medicines and consumables in hospitals cannot be viewed in isolation but in the context of the complete healthcare delivery ecosystem and called for a balanced and evidence-based approach to their pricing.
Dr Girdhar Gyani, Director General, AHPI, said, “Hospitals are not merely selling medicines; they are delivering comprehensive, round-the-clock clinical services, which includes stocking, preparation, quality checks and safe and timely administration of the drugs thereby ensuring desired clinical outcomes for every patient. Medicines and consumables are an important part of this continuum, but their price cannot be viewed in isolation from the overall cost and responsibility of delivering safe and effective patient care.”
