Hospitals permitted to add trade margin on orthopaedic knee implants: NPPA Clarification

This clarification comes after the NPPA was informed about certain Third Party Administrators (TPAs) who are not allowing trade margins to Hospitals, Nursing Homes, Clinic on orthopaedic knee implants as per the rates prescribed by NPPA earlier this month.

New Delhi: Providing clarity on the matter of trade margins, the country’s apex drug price regulator, the National Pharmaceutical Pricing Authority (NPPA) has explained that Hospitals, Nursing Homes and Clinics are permitted to add trade margin on orthopaedic knee implants.

Also Read: Government extends caps price of knee implants for one more year

This clarification comes after the NPPA was informed about certain Third Party Administrators (TPAs) are not allowing trade margins to Hospitals, Nursing Homes, Clinic on orthopaedic knee implants as per the rates prescribed by NPPA earlier this month.

It has been earlier reported that the maximum retail price (MRP) of orthopaedic knee implants would be monitored to make sure that the cost does not increase beyond 10 per cent in a given year.

Also Read: Cost of orthopaedic knee implants will not be allowed to rise beyond 10 percent: NPPA

Addressing the hinderence, NPPA stated that the ceiling prices specified in the notice are inclusive of trade margin and stated;

It is, therefore, clarified that as per Note (r) of the aforesaid Notification, Hospitals/Nursing Homes/Clinics are allowed to add trade margins on orthopedic knee implants as per the rates prescribed in the aforesaid notifications subject to the overall limits of the ceiling It is further clarified that the ceiling prices specified in the aforesaid notifications are inclusive of trade margin.

Medical Dialogues had earlier reported that the government had capped prices of knee implants at a significantly lower rate than current market rates, a move that could result in savings of Rs 1,500 crore annually to patients requiring surgery.

Also Read: Knee Surgery Implants now under Price Ceiling, Effective Immediately