Rs 11 IV set sold for Rs 325: Maharashtra FDA flags huge mark-ups on hospital devices

An IV (intravenous) set that costs Rs 11 to procure is being sold to a bedridden patient for Rs 325, translating into a realised margin of more than 2,800 per cent. Similarly, a 10 ml syringe purchased for Rs 6.75 was found to be sold for Rs 57.20, representing a mark-up of around 747 per cent. An IV cannula with a procurement price of Rs 22.50 was being sold for Rs 424, nearly 19 times its cost.

A nebuliser mask costing Rs 40 was billed at Rs 715, reflecting a mark-up of 1,687 per cent. These figures are part of an extensive market survey conducted by the Maharashtra State Price Monitoring Resource Unit (MSPMRU), operating under the state Food and Drugs Administration (FDA), to examine pricing patterns for medical devices in retail and trade markets. The findings highlight substantial gaps between procurement costs and printed maximum retail prices (MRPs) for several medical devices commonly used in inpatient departments (IPDs). Officials have described the pricing disparities as evidence of unchecked trade-level profiteering.

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What the Maharashtra FDA survey found

The MSPMRU examined IV sets, syringes, nebuliser oxygen masks and other medical devices. The survey found mark-ups of up to 29 times the procurement cost for certain essential inpatient medical devices.

IV sets: The 'Medifusion IV set' manufactured by Mediplus Haryana had a purchase price of Rs 11.05 but carried an MRP of Rs 325, resulting in a realised margin of 2,841 per cent. Another manufacturer, Lyvofusion, recorded a margin of 2,091 per cent.

Syringes: A standard 10 ml syringe manufactured by Lifelong Meditech in Delhi was being sold for Rs 57.20 despite a purchase price of Rs 6.75. Needles manufactured by Romson were also found to be sold at around three times their purchase price.

Nebuliser and oxygen masks: An adult nebuliser mask kit manufactured by Vinjoh Healthcare, priced at Rs 45, was reportedly sold to patients for Rs 652.

Other medical consumables: A catheter manufactured by Ribbel was sold for more than 10 times its purchase price of Rs 29.41.

What Maharashtra FDA Commissioner Tukaram Mundhe said

Maharashtra FDA Commissioner Tukaram Mundhe has described the steep price escalation as "irrational and unjustified" and urged the Centre to review the pricing of commonly used hospital consumables. "This steep escalation is completely irrational and unjustified, as the initial procurement cost already fully covers the manufacturer's total expenses including production, product development, marketing, distribution, and profit margins," Mundhe wrote in a letter to the Secretary, Department of Pharmaceuticals. "Because hospitalised patients critically require these non-negotiable surgical consumables during active treatment, they possess zero bargaining power in IPD settings."

Mundhe has called for commonly used inpatient surgical consumables to be brought under the regulatory framework of the Drugs (Prices Control) Order (DPCO), 2013. "Consequently, the lack of strict statutory price caps under DPCO 2013 allows unchecked trade-level profiteering, imposing an unnecessary, severe, and unjust financial burden on the public," the letter read.

He has also sought administrative and regulatory intervention, including an inter-agency review, measures to cap trade margins and stronger monitoring mechanisms to track the pricing of medical devices and hospital consumables.