Private hospitals in Delhi and NCR made up to 1700% profits on drugs, diagnostics: NPPA

Private hospitals in Delhi and the National Capital Region (NCR) made up to 1737 percent in profits from drugs, diagnostics, and consumables, according to a report by National Pharma Pricing Authority (NPPA).

The NPPA report said that the hospitals are are exploiting both consumers and manufacturers in order to charge exorbitant prices.

The highest margin on procurement prices was 1737 percent on three way stop cock bi-valves. The hospitals purchase this for Rs 5.77, and the MRP is Rs 106.

The profit margin on consumables range between 344 percent and 1737 percent, according to a News18 report.

The report, which analysed four hospitals, found that about 40 percent of the amount billed to patients included non-scheduled medicines and diagnostics. Non-scheduled medicines do not have price caps.

About 25.67 percent of the billing costs included non-scheduled medicines, while 15.56 percent was for diagnostic services.

"It is amply clear that for claiming higher price margins, doctor-hospitals preferred dispensing non-scheduled branded medicines instead of scheduled medicines.", the report said.

The report also pointed out that most of the drugs and devices were sold at the hospitals' in-house pharmacies, and patients were not given the option of procuring them from outside the hospital at cheaper costs.

Diagnostic charges in the four hospitals are higher than the rates at independently run diagnostic centres, the report mentioned.