AiMeD welcomes Delhi govt steps to cap profit margins of hospitals on medical devices

New Delhi: The Association of Indian Medical Device Industry (AiMeD) today lauded the Delhi government for working on capping profit margins of hospitals on drugs and devices, saying this will help consumers access medical devices at reasonable prices.

Based on recommendations of an expert panel, the Delhi government is likely to come out with a policy later this week to cap profit margins of city hospitals on drugs and devices, according to sources.

"We applaud the steps taken by the Delhi government and the advisory given by the IMA to consider capping of profit margin to 50 percent over the procurement cost of a hospital. This will result in consumers access to medical devices at prices below inflated MRP," said Rajiv Nath, Forum Coordinator of AiMeD.

The nine-member panel, headed by Director-General of Health Services Kirti Bhushan, was set up by the Kejriwal government on December 13 last year.

"We submitted the recommendations about two months ago and the new policy on capping of profit margin by hospitals should be out by this week," a top official had told PTI.

The move comes after a public outrage on the death of a child due to dengue last year at a private hospital in Gurgaon, which charged the family around Rs 16 lakh for treatment.

The committee had suggested capping the profit margin for drugs and devices at a maximum of 50 percent above the manufacturing price or procurement cost, whichever was lower, the official had said.

On its website, the AiMeD defines itself as an umbrella association of Indian manufacturers of medical devices covering all types of medical devices including consumables, disposables, equipment, instrument, electronics, diagnostics and implants.

It says it has a primary membership of over 300 manufacturers and additionally of over 200 associate members.