UP hospitals sold medicines at up to 67 times the purchase price

The Uttar Pradesh Food Safety and Drug Administration (UPFSDA) conducted an investigation revealing an alarming discrepancy between the purchase prices and maximum retail prices (MRPs) of medicines in hospitals across Uttar Pradesh. The data gathered from 214 hospital pharmacies and 130 identified medicines showed that in some cases, the MRPs were up to 67 times higher than the procurement prices.

Injectable drugs used in intensive care units and to treat serious bacterial and fungal infections exhibited particularly wide price disparities. For instance, Polymyxin-B injection, costing Rs 74.09 to purchase, was marked with an MRP of Rs 4,980.94, a difference of 67.23 times the purchase price. Terlipressin, used for treating severe bleeding, was priced at Rs 56 for procurement but had an MRP of Rs 3,050, or 54.46 times higher.

Similarly, Colistimethate Sodium 4.5 MIU was bought for Rs 210, yet its MRP was listed at Rs 9,702, a staggering 46 times the actual cost.

High-value medicines also revealed significant gaps. Bevacizumab, priced at Rs 7,541 for procurement, was sold at an MRP of Rs 69,995, a difference of Rs 62,453 (about 8.7 times the purchase price). Bevacizumab's high MRP could potentially allow hospitals to offer discounts to patients while maintaining a substantial profit margin.

The investigation extended beyond drugs to include medical devices, where substantial variations between procurement prices and MRPs were also identified. The UPFSDA is probing the reasons behind these wide pricing gaps, including whether current pricing structures permit excessive margins. They are examining whether high MRPs can enable discounts to patients while still maintaining a considerable difference between cost and billing prices.

The purpose is to determine if such pricing practices ultimately benefit patients and to decide on appropriate actions.