Determined to cap the profits of private hospitals in Delhi and the NCR region, Delhi health minister Satyendra Jain has announced an array of new rules. He clearly stated that hospitals will be mandated to sell essential medicines at MRP and can no longer charge a markup.

It was found earlier by the National Pharmaceuticals Pricing Authority (NPPA), India’s drug pricing watchdog, that consumers are forced by private hospitals to buy from their in-house pharmacies where hospitals would then make exorbitant profits of around 1,700 % on drugs, diagnostics, and consumables.

Prices for non-essential medicines have been capped at 50% above MRP. An analysis by the NPPA pointed to the fact that manufacturers and hospitals were being arm-wrestled into paying exorbitant prices. The findings further revealed that non-scheduled drugs and diagnostic services formed the major bulk of bills charged to patients. Instead of prescribing scheduled medicines, doctors and hospitals are recommending non-scheduled branded medicines for increasing their margins phenomenally.

The Minister also came down hard on packaged surgeries. The new directive issued by the Minister stipulated that after taking a package, patients will have to pay only half the price for second surgery. Patients can avail of high-risk packages at a maximum of 20% higher than the normal package. Customers will have to be explained these packages in detail.