Medical Technology Association of India (MTaI), which represents leading research-based medical technology companies having a large footprint in manufacturing, R&D and training in India, today said 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%.
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 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.”
About Medical Technology Association of India (MTaI)
Medical Technology Association of India (MTaI – pronounced as Em-tai) is a not-for-profit organization duly registered under sub-section (2) of section 7 of the Companies Act, 2013 and Rule 8 of the Companies (Incorporation) Rules, 2014.
MTaI is an association of research-based medical technology companies who have made remarkable investments in Manufacturing, R&D and Health Care Workers Training in India. MTaI represents a wide spectrum of the medical device industry with global experience in innovation and manufacturing. All the time stressing on the three hallmarks of healthcare – Quality, Consistency and Patient Safety, MTaI wants to be a responsible voice of the industry. The association is committed to improving access to affordable and quality healthcare for patients.
MTaI looks to partner with the Government of India in setting a roadmap for the growth of medical devices sector by bringing in even bigger investments in this sector, through ‘Make in India’ and through technology upgradation and dissemination in the provider space.
Join MTaI on Facebook: @mtaiorg | Twitter: @mtaiorg | Website: https://mtaiindia.org/
