Doctors and members of the medical industry have welcomed the move to “cap profit margins in healthcare” proposed by the Delhi government, but said that there “should have been a wider consultation to ensure that a balanced approach is adopted for patients’ well-being”.
Emergency meeting
The Delhi Medical Association (DMA) held an emergency meeting on Monday to discuss the issue of the government looking at capping the hospital profits and maintained that the maximum retail price (MRP) of medicines etc. should be capped and the blame should be shifted from the doctors who are wrongly being accused of pushing up medical treatment costs, said DMA president Ashwani Goel.
The association has also sought a meeting with Delhi Health Minister Satyendar Jain on the issue.
Dr. Goel also said that it is impractical to expect the hospital to show their procurement costs during every billing.
A nine-member committee was set up five months ago to suggest the scope of profit margins on medicines and consumables. The committee comprised members of the Delhi Medical Council, Indian Medical Associations and some bureaucrats from the health department.
It is understood that the Delhi government will issue a policy based on the recommendation of the committee in the next few days.
The panel has suggested capping of the profit margin for drugs and devices at a maximum of 50% above the manufacturing price or procurement cost, whichever was lower.
Meanwhile, the Medical Technology Association of India (MTaI), which represents leading research-based medical technology companies with significant manufacturing investments in India, released a statement.
MTaI’s statement
“In the interest of the patients, it is necessary to come out with a policy after hearing all stakeholders and assessing their importance in maintaining a state of good health. The current constitution of the committee is limited and it is unlikely that resultant policy would be a balanced one. We have not even been formally informed of the formation of such a committee,” it stated.
The group said that while they support the profit margin of 50%, “we differ on what should constitute ‘the base’”. Acceptable criteria, to both industry and the Central government stakeholders is suggested in the Report of The Committee of High Trade Margins in the Sale of Drugs, commissioned by the Department of Pharmaceuticals, GOI,” it noted.
MTaI has said that it is important for Delhi government to avoid looking at a wrong base of manufacturing cost, which is open to manipulation through artificial inflation of raw material and intermediary costs.
“A perspective, so informed, will also ensure uninterrupted supply of critical-care products and thus enduringly protect patients’ interest,” MTaI added.
The group has asked the State health department to “give them an opportunity to explain their views in detail to enable formation of a widely acceptable policy”.
“To ensure lasting success of the policy, the State government should proceed only after all stake holders, including the medical technology industry, have been heard and their contentions have been understood thoroughly,” the group said.
