An expert committee set-up by the Delhi govt. has suggested capping of the profit margin for drugs and devices at a maximum of 50% above the procurement cost or the manufacturers (MRP) price, whichever was lower.
Rajiv Nath, Forum Coordinator of Association of Indian Medical Device Industry (AiMeD) said “We applaud the steps taken by Delhi Govt and the advisory given by IMA to consider capping of profit margin to 50% over the procurement cost of a hospital.”
A nine-member committee was set up five months ago to suggest the scope of profit margins on medicines and consumables. The committee comprised of members of Delhi Medical Council, Indian Medical Association and some bureaucrats in the health department. It is also reported that Delhi government will issue a policy based on the recommendation of the committee in next few days.