Hospital pricing gets a ₹11 IV reality check

Mumbai: Hospital pricing reforms are under scrutiny following a report by the Maharashtra FDA. The healthcare industry has urged for a more evidence-based approach to pricing medical devices and consumables, arguing that procurement costs cannot be directly linked to the cost of delivering technology safely to patients. The Maharashtra FDA's pricing review highlighted significant disparities between trade procurement prices and printed MRP (Manufacturer's Recommended Price) for hospital consumables like syringes and catheters.

For instance, an IV infusion set with a trade price of ₹11.05 had a printed MRP of ₹325, a markup of 2,841%. A syringe costing ₹6.75 was listed at ₹57.20, while a catheter priced at ₹29.41 was marked at ₹310.

The healthcare federation representing hospitals pointed out the various costs hospitals incur in delivering medical technology to patients, including clinical evaluation, emergency inventory management, sterile-chain integrity, traceability, trained teams, specialised infrastructure, expiry risks, and ensuring safe disposal. Siddhartha Bhattacharya, Secretary General of the healthcare industry body Nathealth, emphasized that while excessive margins on routine consumables need examination, sophisticated medical technologies require a distinct evaluation.

He stressed that patient safety, clinical outcomes, and transparency must underpin healthcare delivery. The Centre has reportedly requested a report from the National Pharmaceutical Pricing Authority (NPPA) after the FDA flagged these pricing discrepancies. The industry body recommends clear guidelines on permissible price gaps between trade procurement costs and declared MRPs for an equitable healthcare system.