Pharma News

Supreme Court raises concerns over high medicine mark-ups by hospitals

The Supreme Court on Wednesday raised concerns over the high mark-ups charged by some corporate hospitals on medicines and questioned the practice of requiring patients to purchase drugs through in-house pharmacies.

A bench of Justices Vikram Nath and Sandeep Mehta was hearing petitions concerning regulation of medicine prices, generic prescriptions and controls on medical devices under the Drugs (Prices Control) Order, 2013.

During the proceedings, the court referred to the wide difference between the price at which certain medicines are supplied to retailers and the maximum retail price charged to patients. The bench cited the example of a cancer medicine with a maximum retail price of Rs 27,000 against a price to retailer of Rs 2,700.

The court also raised the possibility of a uniform margin for medicines and asked the Centre to examine the issue. Solicitor General Tushar Mehta, appearing for the Centre, said the government would look into the matter and work towards finding an appropriate balance.

The proceedings have brought renewed attention to medicine pricing and the financial burden faced by patients undergoing treatment in private hospitals. The issue is particularly significant for patients requiring long-term treatment or expensive medicines, where differences between procurement prices and patient-facing prices can substantially increase healthcare costs.

The court also questioned the practice of hospitals requiring inpatients to purchase medicines from their own pharmacies. The observations came as part of a wider examination of the regulatory framework governing medicine prices, prescriptions and medical devices.

The matter is expected to remain under consideration as the Centre examines the concerns raised by the court. Any changes to medicine pricing or hospital pharmacy practices would depend on further proceedings and regulatory decisions.

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