Price capping on medical devices under threat

Victory for us. Govt ignored the lobby and disnt increase price cap. They are however still pushing for Trade Margin rationalisation: In its reaction to the National Pharmaceutical Pricing Authority’s notification that extends the applicability of the ceiling prices fixed for orthopaedic knee implants for another year, the AdvaMed has expressed its deep concern over the move. In a statement issued on 16th August, AdvaMed informed that they had hoped for a better outcome that values Quality, Safety and Clinical results and expected an informed decision taken after considering the consultations and deliberations held over the course of time. Earlier in a notification issued on 15th August, the government extended the cap on prices for knee implants, ranging from Rs 54,000 to Rs 1.14 lakh till August 2019. While the move has been welcomed by the patients and various healthcare activists, AdvaMed believes that it is unfair to the medical technology industry. The statement by AdvaMed went on to quote the NPPA notification dated 22 July 2014 where it was mentioned that DPCO 2013 Para 19, should be applicable for only one year. Post that, DPCO para 21 stated, increase of annual MRP within 10 percent should be allowed. In the last one year, since the knee price cap, rupee has depreciated over 10 percent, while local inflation has pushed up operating costs upwards of 6 percent. “The industry had put this up to request to the authority requesting for a 10 percent minimum increase in prices, which for non-scheduled formulations (knee implants fall under this category) is provisioned for, under DPCO. This request was a valid request and should have been considered, given the increasing cost pressures on a falling rupee, which for the next 1 year could take a toll on all companies. Further, some other essential knee implant component’s costs like bone cement, cost of depreciation value of instruments and other value-added services provided by the knee implant companies, which were erroneously omitted last year, should have been included in the revision order,” stated the AdvaMed. The association that represents global medical technology companies further claimed that the instruments are not regulated medical devices and do not come under the purview of the NPPA as they are not covered under DPCO 2013. Instruments cannot be covered in the knee implant price cap, as this act is not applicable to non-notified instruments. AdvaMed also stated that it would continue to constructively engage with NPPA and the government in general to support industry in its fair ask. It added: “It is key to seek measures to collaborate with different stakeholders and find mutually acceptable solutions such as ‘Trade Margin Rationalization.’ Rationalizing trade margins on the basis the first point of the sale i.e. the distributor rather than on the landed cost of devices would address the issue of excessive markups while bringing greater discipline and transparency to the channels. At the same time, margin controls would permit manufacturers of medical devices to continue to innovate and compete on the basis of clinical merit and value of the technology.” “We would like to reiterate that it is critical to evaluate the long-term negative impact of such decisions on patient outcomes, the consequent increase in adverse events, and the subsequent rise in the future healthcare costs. Also, there is a dire need to encourage research-based global medical device companies to invest in the Indian market for patients to benefit from the latest technologies. For the industry, it will enable us to create a healthy ecosystem where these high-quality technology companies will have a positive impact on the revolutionary NHPS scheme,” the statement concluded. more  

It is difficulty for price capping of medical devices. The Govt can fix trade margin i.e. understand their costs (which can be an endless list and no way for Govt to know) more  

Drug mafia is very strong allovern the world more so in USA - let our Government do some thing to curb activities of drug mafia more  

Corporate hospitals should charge for only correct diagnosis, treatment operations etc, but are overcharging for 7 star facilities, like hospitality industry, and super specialty charges, for incorrect diagnosis? Total loot shld be booked under Human right voilations? starting from Apollo etc, and even Health insurance agents / co's are hand in glove to mint from commissions. more  

The volume of loot is much more in the sale of highly prices medicines/accessories than medical devices which are used by very few patients. The prices of all medicines/accessories should be checked by the regulators. The complete address of producers, drug licence, efficacy of medicines should be check by the Health Authorities in every State. The unscrupulous producers sell fake, substandard medicines/accessories in partnership with Doctors/Nurses and chemists. The corruption and non-accountability of Regulators has created this alarming situation but to State Govt. has woken up till date to check this systematic loot. more