NPPA: ‘To claim higher margin, doctors-hospitals prescribe branded medicine’

Since the analysis done by NPPA is a matter of public concern, it is being up in public domain with the objective of removing information asymmetry between patients and the hospitals and for the greater transparency in healthcare system m in public interest

NPPA: ‘To claim higher margin, doctors-hospitals prescribe branded medicine’

On Tuesday evening, the National Pharmacists Pricing Authority (NPPA) tweeted, ‘NPPA uploads analysis of bills of some hospitals based on complaints of overcharging.’

On seeing the upload, a list of medicines, their actual price as well as the profit margin was unveiled.

“It is amply clear that for claiming higher margins, doctors and hospitals preferred prescribing and dispensing non-scheduled branded medicines instead of scheduled medicines while scheduled medicines under National List of Essential Medicines (NLEM) are supposed to cover all essential medicines,” said an official statement by the NPPA.

“Apart from the non-scheduled drugs, the charges on consumables is one tenth of the total bills and more than two times of the expenditure on scheduled (essential) drugs,” added the statement.

“Diagnostic services constitute more than 15% of the total cost,” added the statement.

Even the commonest of products like bed bath towels/wipes or eco protects were given a 942% margin price to stockists. Surgical gloves, disposable syringe needles were also priced much higher.

RP Yajurvedi Rao, President, Society for Awareness of Civil Rights in Mumbai said, “Our NGO had done a similar study about two years ago and sent to the Prime Minister. There is a massive profit margin at each medicine point.”