Mumbai: The Maharashtra Food and Drug Administration (FDA) is studying Karnataka’s circular directing hospitals to disclose the procurement or landing price of medicines and medical devices on itemised bills, and is exploring whether a similar mechanism can be introduced in the state.
FDA Examines Karnataka's Legal Framework
“We are studying under which Act the Karnataka FDA issued the circular and whether this can be implemented in Maharashtra,” FDA Commissioner Tukaram Mundhe told the Free Press Journal.
Mundhe said there is currently no specific provision in Maharashtra mandating hospitals to disclose the landing price of medicines on patient bills. However, the department is examining the Karnataka circular and exploring the legal provisions under which a similar measure could be implemented in the state.
Move Could Bring Transparency To Hospital Bills
The move could improve transparency in hospital billing by enabling patients to compare the procurement cost of medicines and medical consumables with the amount charged to them. The issue is particularly significant for patients undergoing major surgeries or prolonged treatment, where the cost of medicines, implants and consumables can substantially increase hospital bills.
In a related move, Mundhe had written to the National Pharmaceutical Pricing Authority (NPPA) on September 16, seeking intervention over steep mark-ups on medical consumables. Citing a survey by the Maharashtra State Pharmacy and Medical Representatives Union (MSPMRU), which found mark-ups of up to 2,841.17%, he called for a review of pricing practices, rationalisation of trade margins and stronger price monitoring.
The letter highlighted consumables such as intravenous (IV) sets, syringes, nebuliser masks and oxygen masks, pointing to the additional financial burden that high mark-ups can place on patients.
Karnataka’s circular sought disclosure of the landing price, maximum retail price (MRP) and amount charged to patients for medicines and medical devices through itemised bills. However, the directive has faced objections from pharmaceutical trade bodies, and its current status remains to be confirmed.
Maharashtra FDA’s examination of the circular comes amid concerns over medicine affordability and transparency in healthcare costs. Any move to introduce a similar requirement in the state will depend on the department’s assessment of the applicable legal provisions and the mechanism through which hospitals could be directed to disclose procurement prices.
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