Fortis made 108% profit in treating 7-yr-old: report

Four-member committee set up by Haryana govt finds profit margins on drugs varied from 5% to 1,737%

December 16, 2017 01:37 am | Updated 03:42 pm IST - GURUGRAM

The four-member committee set up by the Haryana government to conduct a probe into the case of seven-year-old Adya, who died during treatment at Fortis Memorial Research Institute (FMRI) here, has found that the rate charged from the patient for drugs and consumables used during the treatment showed profit margins of as high as 1,737% and the total bill was charged at a profit margin of 108%.

As per the report (a copy of which is with The Hindu ), the committee said that the cost price at which FMRI purchased drugs and consumables used for Adya and the rate charged from the patient showed profit margins of as low as 5% and as high as 1,737%.

‘Charged as per MRP’

The committee, in its report, revealed that the hospital purchased the drugs and consumables for ₹3,22,044, but charged ₹6,70,126 as per the Maximum Retail Price (MRP) from the patient, making a profit of 108 %. The report said that all drugs issued to Adya were found charged as per MRP printed thereon, but “the hospital management looks to be attempting to get the maximum profit out of the drugs and consumables in the garb of the Maximum Retail Price.”

The report said that the profit margin was very high and the hosptial should not have used MRP as a shield to charge such a profit margin. The 40-page report said that in the absence of any comprehensive package, the billing pattern of the hospital generated a very high cost as is evident in this patient’s bill. “If a comprehensive package on per day, all-inclusive charges, for ICU care was implemented, the bill could have come down to one-third of the cost charged,” said the report.

Huge price gap

The committee pointed out that no violation of Drug Price Control Order was observed, but Adya was issued same drugs of different brands with a huge gap in pricing.

The girl was issued Meropenem injection of two different brands with MRP at ₹3,112.50 per unit and ₹499 per unit. The committee said that the basis for selection of the particular drug was neither understandable nor was a satisfactory explanation given in this regard.

The committee also found out that the hospital charged ₹12,800 in excess for platelets. Out of the 25 units of platelets (Random Donor Platelets) given to the patient, 17 were charged as per the government rate of ₹400 per unit, but eight units were charged at ₹2,000 per unit.The committee suggested that “Jan Aushadhi and AMRIT stores be opened in all the Super Speciality and Corporate Hospitals because profit margin of these stores is 20-30%, whereas an approximately 108% profit margin was charged by the FMRI on drugs and consumables given out of its own stores”. The report also pointed out that as per Indian Medical Council (Professional, Conduct, Etiquette and Ethics) Regulations, 2002, the physician should include use of generic name of drugs and FMRI and all high-end private hospitals should follow these guidelines.

‘No violation’

When contacted, the hospital responded to the committee report saying that “Investigation by the inquiry team confirmed that all the drugs issued to treat Adya were found charged as per their MRP printed thereon. It has been confirmed by the committee that no violation of Drug Price Control Order was observed with respect to the drugs supplied to Adya.”

“As regards platelets, we found that there was a clerical oversight while placing this order in the system. The difference of ₹12,800 was duly refunded to the family,” said the hospital in its statement.

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