Delhi govt should fix margins on equitable base: MTaI

New Delhi: Delhi government’s plan to curb prices of drugs and medical devices in hospitals will be effective if an equitable base is fixed to reach the acceptable margin of 50%, said the Medical Technology Association of India (MTaI) in a statement on 3rd April.

The Delhi government is working on a proposal to limit the mark-up on drugs and medical devices like consumables and implants to up to 50% over and above the procurement price for hospitals.

“We appreciate the intention to curb profiteering in healthcare space. We support the mark-up of 50% over and above the procurement cost. The proposal should be implemented in compliance with the recommendations mentioned in the Report of The Committee of High Trade Margins in the Sale of Drugs, 2016 to create a level playing field for all stakeholders including the medical device companies,” MTaI Chairman and Director General Mr Pavan Choudary said.

The Report of The Committee of High Trade Margins in the Sale of Drugs suggests that profit margin should be the difference between the Price to Trade (the price at which the manufacturer or marketing company sells the drug to the distributor or stockist) and the MRP. The report adds that “the government should consider capping the overall trade margins, thus, giving a level playing field to every trade channel”.

Mr Choudary added, “We support the undiluted implementation of the recommendations as that would provide for far greater affordability without compromising the industry’s ability to invest in innovation and training of healthcare professionals.”