An IV (intravenous) set costing Rs 11 is sold to a bedridden patient at Rs 325, representing a profit margin of over 2,800 per cent.
These are not just numbers. They are the findings of an extensive market survey conducted by the Maharashtra State Price Monitoring Resource Unit (MSPMRU) under the state Food and Drugs Administration (FDA) to assess pricing patterns of medical devices sold in retail and trade markets. The findings point to what officials describe as unchecked trade-level profiteering. The survey found significant disparities between procurement costs and printed maximum retail prices (MRPs) across several categories of medical devices used in inpatient departments (IPDs). Needles manufactured by Romson were also found to be sold at thrice their purchase price. Asking for administrative and regulatory intervention, Mundhe suggested inter-agency review; administrative, legal, or policy interventions like capping trade margins; strengthening monitoring systems.
“Because hospitalised patients critically require these non-negotiable surgical consumables during active treatment, they possess zero bargaining power in IPD settings. A 10 ml syringe costing Rs 6.75 is sold for Rs 57.20, an exorbitant mark-up of 747 per cent. An IV cannula priced at Rs 22.50 is sold for Rs 424, nearly 19 times its procurement cost. A nebulizer mask costing Rs 40 is billed at Rs 715, a mark-up of 1,687 per cent. The team examined IV sets, syringes, nebuliser oxygen mask, and miscellaneous devices and found mark-ups of up to 29 times the procurement cost on essential inpatient medical devices. IV Sets: The ‘Medifusion IV set’ by Mediplus Haryana had a purchase price of Rs 11.05 and an MRP of Rs 325, yielding a realised margin of 2,841 per cent. Another manufacturer, Lyvofusion, showed margins of 2,091 per cent. Syringes: A standard 10 ml syringe manufactured by Lifelong Meditech in Delhi was being sold for Rs 57.2 against a purchase price of Rs 6.75. Nebulizers and Oxygen Mask: An adult nebuliser mask kit manufactured by Vinjoh Healthcare is priced at Rs 45 but was sold to patients for Rs 652. Miscellaneous Consumables: A catheter manufactured by Ribbel was sold at over 10 times its purchase price of Rs 29.41. Mundhe called to place common inpatient surgical consumables under the regulatory ambit of the Drugs (Prices Control) Order (DPCO), 2013.
Defining the price hike as “irrational and unjustified”, Maharashtra FDA Commissioner Tukaram Mundhe has urged the Centre to review the pricing of commonly used hospital consumables. “This steep escalation is completely irrational and unjustified, as the initial procurement cost already fully covers the manufacturer’s total expenses including production, product development, marketing, distribution, and profit margins,” Mundhe wrote in a letter to the Secretary, Department of Pharmaceuticals. “Consequently, the lack of strict statutory price caps under DPCO 2013 allows unchecked trade-level profiteering, imposing an unnecessary, severe, and unjust financial burden on the public,” the letter read.
