After Restaurants, Tukaram Mundhe Trains His Guns On Medical Device Pricing

A Maharashtra government survey has found that some surgical consumables and medical devices used in hospitals are being sold at markups of as much as 2,841% over their trade procurement prices.

The findings, reported by Mint, have prompted Maharashtra Food and Drug Administration (FDA) Commissioner Tukaram Mundhe to write to the Department of Pharmaceuticals and the National Pharmaceutical Pricing Authority (NPPA), seeking a review of medical device pricing rules.

The move marks Mundhe's latest push to tighten scrutiny of pricing and consumer protection. Earlier this year, his inspections of Mumbai's food sector led to the temporary closure of several well-known eateries over hygiene violations.

What Did Maharashtra’s Survey Find?

According to the survey reviewed by the news publication, there are significant differences between the prices at which some medical devices are procured by private hospitals and the MRPs eventually charged to patients.

Mundhe told Mint that the survey found markups of up to 2,841% in some cases. The products surveyed included IV sets, syringes, nebulizers and oxygen masks used in inpatient care.

The survey found that private hospitals procured some catheters at ₹29.41, while their MRP was ₹310. Similarly, IV infusion sets bought for ₹11.05 were billed to patients at ₹325.

These large differences have raised questions about how prices are set across the medical device supply chain. The NPPA is examining whether manufacturers and intermediaries are adding substantial margins between procurement prices and the prices ultimately charged to patients, according to two officials cited by the newspaper .

Why Are Medical Devices Under The Scanner?

A key issue is that many hospital surgical consumables remain outside the direct ceiling-price mechanism under the Drugs (Prices Control) Order, 2013 (DPCO).

The DPCO gives the NPPA powers to regulate ceiling prices for essential medicines and notified medical devices. However, Mundhe's survey found that several categories of surgical consumables used by hospitals are not covered by these strict price controls.

Mundhe has argued that the absence of tighter statutory controls has allowed large gaps between trade procurement prices and declared MRPs to persist. In his communication to the central authorities, he sought margin rationalisation, an inter-agency review and guidelines for the permissible gap between procurement costs and MRPs.

"This is not merely a pricing issue; it is a patient-protection issue," Mundhe told Mint. He said patients often lack the information needed to judge whether the price they are being charged for a medical product is reasonable.

The NPPA is now examining its own data and company filings to assess whether formal margin-capping mechanisms may be needed, according to the officials cited by the publication. The regulator has also received similar representations from drug commissioners in Punjab, Rajasthan and Tamil Nadu.

Hospitals Seek A Balanced Approach

The issue is not limited to medical device manufacturers and distributors. Private hospitals could also face greater scrutiny if regulators move towards tighter monitoring of prices charged for such products.

Mundhe has described the pricing gaps as a potential case of "unchecked trade-level profiteering" and has called for closer examination of the differences between procurement prices and MRPs.

Hospitals, however, have stressed that any regulatory intervention needs to balance patient protection with the financial requirements of running healthcare facilities.

"Profitability is essential for hospitals to invest in infrastructure, technology and patient safety. However, it should never come at the cost of transparency or patient trust," Dr Aashish Chaudhry, managing director at Aakash Healthcare, New Delhi, told Mint.

He said the focus should be on greater transparency and accountability across the healthcare ecosystem while ensuring that hospitals remain financially sustainable and patients are protected from unjustified costs.

For Mundhe, the latest survey puts medical device pricing under a new regulatory spotlight. The next step will depend on how the Department of Pharmaceuticals and NPPA respond to Maharashtra's findings and whether the Centre decides to bring more hospital-use devices under tighter price monitoring.