Actual stent cost springs surprises

KOCHI: Heart patients are being robbed royally by hospitals and stent makers if the proposed formula released by the National Pharmaceutical Pricing Authority (NPPA) to fix the ceiling price of coronary stents is any indication. The office memorandum released by NPPA on Thursday (January 12) reveals that stents are imported at a very low price, but sold at exorbitant prices. The price calculated by the NPPA after adding 35 per cent margin to the import cost comes to only Rs 21,881.

Hospitals charge patients from Rs 60,000 to Rs 1,60,000 depending on various brands — 300 to 700 per cent more. The NPPA is mandated to fix the ceiling price of coronary stents under the Drugs Price Control Order (DPCO). The NPPA notification provides five methods for setting the price — (a) Central Government Health Service (CGHS) price, (b) average price to distributor (PTD) based pricing (PTD+16%) (c) average price to hospital (PTH) based pricing, (d) landed cost-based pricing (cost+35%) and (e) average of CGHS and PTD + 16 %. The NPPA will have to zero in on one method from these.

Hospitals and manufacturers are pushing for the method of ceiling of prices based on the average selling prices to hospitals. The NPPA calculates that this price for drug-eluting and biodegradable stents would come to Rs 67,272, which would be far above the affordable price. The price under CGHS for any coronary drug eluting stent now is '23,625, inclusive of all taxes. The draft version of the proposed rate calculation is being circulated among stakeholders for consultation before finally fixing the price.

The suggestions in this regard have to be submitted in 10 days. Top sources said that the accuracy of the data provided by manufacturers and hospitals for fixing the price to NPPA is doubtful. When contacted, NPPA chairman Bhupendra Singh told this newspaper over the phone on Saturday that he was not in a position to react on the issue and his office will answer if an email in this regard is sent.