A Price Cap On Medical Devices Coming Soon?

न्यूज़ वर्ल्ड इंडिया | 0
| August 24 , 2017 , 09:20 IST

In view of the steep costs of medical treatment and hospitalisation in the private sector, a draft national medical devices policy has been circulated by the Centre that could soon bring a price cap on most medical devices by bringing them under the ambit of price regulation. The draft will likely be discussed during a meeting with industry bodies on Thursday at FICCI in New Delhi.

Currently, since 80 percent of all medical devices are imported products it poses a challenge for the government to regulate prices of even specified devices like stents or knee implants as the cost is based on the landed price of the imports. Only a few critical medical devices are under indirect price control at present.

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The new proposal outlines measures to boost local manufacturing of devices which will help bring a price cap on medical devices. The draft also suggests the creation of a national medical devises authority along with a separate pricing policy and a division under the National Pharmaceutical Pricing Authority (NPPA) to regulate the pricing of medical devices.

"The government may announce a separate policy enunciating the principles for regulating prices of identified medical devices and implement the same by notifying a separate medical devices prices control order," the draft says.

According to reports, the medical devises market in India is pegged to be around $7 billion with an annual growth of nearly 15 percent.

The proposal continues the government efforts to reduce the costs of medical care and insurance payouts in the private sector.