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Economy, business and finance
Medical device industry backs Tukaram Mundhe's call for review of pricing rules
Maharashtra FDA commissioner Tukaram Mundhe has written to the Department of Pharmaceuticals and the NPPA, urging regulators to cap trade margins or bring essential device categories under structured price monitoring.
New Delhi: The medical device industry has backed Maharashtra Food and Drugs Administration (FDA) commissioner Tukaram Mundhe’s call for a national overhaul of device pricing rules.
The support from the Association of Indian Medical Device Industry (AiMeD), representing 1,000 member companies, follows a Maharashtra state survey revealing that private hospitals charge patients for surgical consumables at markups as high as 2,841% over their trade procurement price, Mint reported on Tuesday.
Mundhe has written to the Department of Pharmaceuticals and the National Pharmaceutical Pricing Authority (NPPA), urging regulators to cap trade margins or bring essential device categories under structured price monitoring. Similar concerns have been raised by FDA commissioners in Punjab, Rajasthan, and Tamil Nadu.
The pricing discrepancies involve surgical items and medical devices that fall outside the direct ceiling-price mechanism of the Drugs (Prices Control) Order (DPCO), 2013.
The development assumes significance given that India’s medical devices market is valued at around $18 billion, according to the government estimates.
“We urge regulators and policymakers to act on Mr Mundhe’s call by instituting structured price monitoring and margin rationalization, starting with some pilot studies on AiMeDs proposals as policy making by evidence,” the AiMeD said in a statement late Tuesday. “Patients deserve fair prices, not inflated margins, and India deserves a medical device ecosystem that is affordable, ethical, and globally competitive,” it added.
A survey of private hospital invoices by the Maharashtra State Price Monitoring Resource Unit (MSPMRU) across four consumable categories showed huge disparity between trade procurement costs and declared maximum retail prices (MRPs). The widest gap appeared in standard IV infusion sets, which were bought by hospitals for ₹11.05 and billed to patients at ₹325—a 2,841% markup. Other IV infusion sets were procured at ₹11.50 and billed at ₹252.
Similar gaps were found across other routine clinical supplies. A 10ml syringe bought for ₹6.75 was billed at ₹57.20, while hypodermic needles bought for around ₹1 were sold for ₹3.30. For respiratory support, an adult nebulizer mask kit purchased at ₹40 carried a printed retail price of ₹715, while another nebulizer mask kit bought for ₹45 was billed at ₹652.
Among miscellaneous surgical items, an IV cannula extension line bought for ₹22.50 was sold at ₹424, balloon catheters purchased at ₹29.41 were billed at ₹310, and bacterial-viral HEPA filters bought for ₹50.68 were priced at ₹473.
“Based on our field findings, I have submitted the survey to the Department of Pharmaceuticals and the NPPA, seeking appropriate intervention; including rationalization of trade margins, structured price monitoring and, where warranted, bringing essential medical devices within an effective price-regulation framework,” Mundhe had told Mint. “Healthcare pricing must be transparent, rational and fair. Information asymmetry should never become a source of avoidable financial burden for a patient.”
AiMeD also said the pricing structure affects patients, manufacturers and importers. “Patients, who cannot bargain or choose devices, are left vulnerable to inflated MRPs, while ethical manufacturers and importers are forced to either play within a distorted system or exit the market. This situation penalizes both consumers and responsible suppliers, eroding trust and competitiveness,” the association said.
Priyanka Sharma is a journalist at Mint, where she covers the Union Ministry of Health and the pharmaceutical industry. Her work focuses on explaining government policies and how they impact healthcare and the medicine market in India. With 12 years of experience in journalism, she has built a reputation for providing clear and honest news on important health topics that affect the entire country.<br><br>Her educational background includes a journalism degree from the prestigious Indian Institute of Mass Communication (IIMC) and specialized training in public health from the Public Health Foundation of India. Before her current role at Mint, Priyanka worked with India Today, The Pioneer, and ANI. She also served as a lead consultant for the National Health Authority, which gave her firsthand knowledge of how the government manages large-scale health programmes.<br><br>Priyanka is based in New Delhi and is an avid traveller who loves visiting the mountains. She has a great interest in regional flavours, particularly South Indian food.