Bengaluru, October 1 (Daily Kiran) : The Karnataka government has raised concerns about substantial discrepancies between the institutional purchase prices and maximum retail prices (MRP) of costly medications, including cancer treatments, antibiotics, and medical supplies used in hospitals. Some products have been found to have an MRP exceeding their landing cost by more than 50 times.
An official statement from the Karnataka Home Ministry revealed that the Food Safety and Drug Administration (FDA) of Karnataka identified these issues during inspections of hospitals treating cancer patients. Consequently, they have approached the Union Ministry of Health and Family Welfare, along with the National Pharmaceutical Pricing Authority (NPPA), requesting national intervention to prevent exorbitant billing for patients.
According to the department, while some pharmaceutical companies offer significant discounts to hospitals on institutional prices, patients are still charged amounts close to the printed MRP for these medications. Investigations have uncovered 253 drugs with significant price discrepancies.
For instance, the landing cost of Gufipol supplied by Criticare was found to be ₹86, while its MRP stood at ₹4,528, marking a staggering 52.6 times difference. Similarly, Gufisyclin-50 injection had a landing cost of ₹160 compared to an MRP of ₹7,110, reflecting a 44.4 times difference. Other examples include a landing cost of ₹118 for Turlitis against an MRP of ₹4,416, and a purchase price of ₹1,000 for Taxocare 120 mg with an MRP of ₹21,617.
The inspection also revealed similar discrepancies in hospital supplies. An adult nebulizer mask had a landing cost of ₹44.50 but an MRP of ₹950. An IV set purchased for ₹14.75 was found to have an MRP of ₹295.
On September 23, Health and Family Welfare Minister U.T. Khader wrote to the central health minister, urging action to curb excessive billing for medications, medical devices, and hospital supplies bought at institutional prices.
The state government proposed mandatory disclosure of both landing costs and MRPs on patient bills, expansion of the scope of price-controlled drugs under the Drug Price Control Order (DPCO), and regulation of trade margins on essential expensive medications and medical supplies.
Additionally, the state has called for the formation of an inter-ministerial expert group to study the issue. Suggestions include amending the Drug (Price Control) Order of 2013, rationalizing trade margins, ensuring transparency from cost to MRP, expanding the National List of Essential Medicines, and establishing an audit and enforcement mechanism.
The FDA and drug enforcement officials conducted special verification campaigns across various districts in Karnataka, including Bengaluru, on September 25 and 26. They inspected over 768 consumable items and 189 expensive drugs, with findings set to be submitted to the central government.
The department noted that this verification campaign will continue in phases, focusing next on anti-retroviral drugs, critical and new-generation antibiotics, medical devices, and supplies that significantly impact patients financially.
The Karnataka government reiterated its commitment to enhancing billing transparency in healthcare services and protecting patients from unnecessary financial burdens.
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