The Centre on Wednesday fixed a price range between ₹54,000 and ₹1.14 lakh for knee implants. Also, the price of specialised implants in cancer and tumour cases has been cut to ₹1,13,950 from the current price of ₹4 lakh to ₹9 lakh.
Trade margin of 313%
The order also specified that no healthcare institutions such as hospitals, nursing homes and clinics performing orthopaedic surgical procedures shall solicit any patient to purchase knee implants from them in case the patient wishes to procure these from a third party.
The National Pharmaceutical Pricing Authority (NPPA) had maintained that the average trade margin on orthopaedic knee implants were found to be as high as 313%. In its order dated August 16, it said, “Osteoarthritis is likely to become the fourth leading cause of disability by 2020 as per the World Health Organization (WHO). India is likely to be one of the leading countries of such immobilized citizens in terms of numbers. Preventing such a scenario is essential in individual as well as national interest.”
The move is expected to save an estimated ₹1,500 crore annually.
“There are 1.5 crore to 2 crore patients who need knee implants. Each year, 1.2 lakh to 1.5 lakh knee surgeries take place in India,” read the NPPA order.
According to the order, the ceiling price will apply to all stocks of knee implants available for sale from the date of publication of the notification.
New price regime
“Special orthopaedic knee implants for cancer, tumour, etc. will follow the prices of revision surgery. However, if the import prices are higher than the ceiling price of such implants, manufacturers may add a maximum margin of 30%,” the order said.
Under the new price regime, the MRP of the most widely used complete knee implant (cobalt-chromium) has been fixed at ₹54,720 plus GST, which is a reduction of 65% from the earlier average MRP of ₹1,58,324. This knee implant enjoys 80% of the market share.
The new MRP of the special metal titanium and oxidised zirconium has been fixed at ₹76,600 plus GST, down by 69% from an average rate of ₹2,49,251. High flexibility implants will now cost ₹56,490 plus GST, a cut of 69% from the average MRP of ₹1,81,728.
Reacting to the development, medical device industry body Medical Technology Association of India (MTaI) said: “MTaI is reviewing the National Pharmaceutical Pricing Authority order issued on knee implants. We will revert with suggestions, if any, to the NPPA for ensuring the practicality of its implementation. The subject is intricate.”
