A Maharashtra Food and Drug Administration (FDA) survey has highlighted a sharp gap between the procurement prices and printed maximum retail prices (MRPs) of commonly used hospital consumables. An IV infusion set purchased for Rs 11.05 was found to carry an MRP of Rs 325, representing a 2,841% mark-up.
FDA Commissioner Tukaram Mundhe has urged the Centre to review the pricing framework, saying patients often have little ability to question or compare the cost of essential medical supplies during hospitalisation. The Centre has now sought a report from the National Pharmaceutical Pricing Authority (NPPA) on the issue. The medical-device industry has broadly supported greater transparency and price monitoring, while healthcare industry representatives have called for an evidence-based framework that accounts for the costs involved in safely delivering medical technology.
From Rs 11 IV Sets To Rs 325 MRPs
The Maharashtra FDA’s survey found significant differences across several medical consumables used in inpatient care. Besides the IV infusion set, a syringe procured for Rs 6.75 was found to carry an MRP of Rs 57.20, while a catheter purchased for Rs 29.41 had an MRP of Rs 310. The survey also examined products such as nebuliser masks and oxygen masks. In one example cited by Mundhe, a nebuliser mask costing Rs 40 carried a price of Rs 715.
Mundhe said the issue was particularly significant because these are not optional purchases for patients admitted to hospital. “Patients cannot compare prices, seek alternatives, or question a number printed on a box while receiving care,” he said, arguing that the person paying the bill often has the least information about how the final price was determined. He also pointed to the difference between medicines, which are subject to established price controls in several categories, and many medical devices and consumables that remain outside the same framework.
Survey Findings Sent To Centre
The survey was conducted in July across hospitals in the Mumbai Metropolitan Region, Pune and Chhatrapati Sambhajinagar, following complaints about high charges for consumables used during inpatient treatment. The FDA submitted its findings to the NPPA in the first week of August and recommended a review of the permissible gap between trade procurement prices and declared MRPs. The state FDA has also clarified that it does not have the authority to regulate hospital bills or directly control the prices charged to patients. Price regulation falls under the relevant central framework and the NPPA.
The issue has now moved beyond Maharashtra. On September 17, the Centre sought a report from the NPPA on the pricing discrepancies, with the Department of Pharmaceuticals expected to review the authority’s analysis before deciding on further action. The development could also revive discussions around trade-margin rationalisation for medical devices. Under the existing framework, only certain notified medical devices are subject to price regulation, while several commonly used consumables are outside price-control mechanisms.
Medical-device manufacturers have welcomed the call for greater transparency. The Association of Indian Medical Device Industry (AiMeD) has advocated transparent trade-margin caps and structured price monitoring, with forum coordinator Rajiv Nath saying, “Patients deserve fair prices, not inflated margins.” Meanwhile, healthcare industry body NATHEALTH has called for a differentiated, evidence-based approach rather than blanket conclusions, noting that procurement costs do not necessarily represent the full cost of delivering medical technology safely to patients.
The Logical Indian’s Perspective
Healthcare costs are often difficult for patients and families to understand, particularly when they are dealing with an emergency or prolonged hospitalisation. Transparent pricing can help patients make informed decisions while also giving ethical manufacturers, distributors and healthcare providers a fair and predictable system to operate within.
The findings from Maharashtra warrant careful examination rather than assumptions about every hospital or medical-device company. Any future regulation should balance affordability, transparency, patient protection and the legitimate costs involved in maintaining quality healthcare. As the Centre examines the NPPA’s findings, what steps do you think could make hospital billing more transparent and easier for patients to understand?
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