Supreme Court Questions 1,200% Mark-Up on Cancer Drugs
The Supreme Court reserves judgment on a plea demanding price controls on cancer medications amidst shocking mark-ups by hospitals.
The Supreme Court criticized hospitals for exorbitant pricing of cancer treatments, labeling it as 'loot'.
A plea was filed seeking regulations on drug pricing and mandatory generic prescriptions.
The Court highlighted the disparity between manufacturer prices and retail costs, urging government accountability.
On Tuesday, the Supreme Court of India reserved its judgment on a public interest litigation regarding the pricing of non-scheduled medicines and medical consumables, specifically focusing on the case of Kishan Chand Jain vs. the Ethics and Medical Registration Board. The bench, comprising Justices Vikram Nath and Sandeep Mehta, expressed grave concerns over the excessive mark-ups on essential drugs, particularly in the context of cancer treatment, questioning the rationale behind such inflated costs.
During the proceedings, the Court highlighted a troubling incident involving a drug dealer whose wife was receiving cancer treatment at a prominent private hospital. The dealer revealed that the chemotherapy injection, which he could procure for ₹11,000, was being charged at ₹1,30,000 by the hospital. The Court challenged the authorities to justify this stark price difference, labeling the situation as a form of exploitation that preys on patients lacking bargaining power.
The Additional Solicitor General, Aishwarya Bhati, argued that the government was actively working on pricing policies. However, the bench dismissed this assertion, pointing out that a price hike from ₹11,000 to ₹1,30,000 could not be considered a reasonable adjustment. The Court emphasized that the current pricing structure reflects a capitalistic mindset that undermines patient welfare, especially when life-saving treatments are involved.
Despite recent government efforts to cap trade margins for anti-cancer drugs at 30%, the Court noted that a vast majority of medications remain unregulated under the Drug Price Control Order (DPCO). The justices questioned the effectiveness of the DPCO, highlighting that essential consumables are often sold at exorbitant prices, which further burdens patients. They demanded clarity on why the government permits such practices and called for accountability regarding the pharmaceutical industry's innovation record over the past three decades.
Looking ahead, the Supreme Court's decision will have significant implications for healthcare pricing in India. As the bench prepares to deliver its verdict, the outcome could lead to stricter regulations on drug pricing and potentially reshape the financial landscape of private healthcare facilities. The ongoing debate over the balance between profit and patient care remains at the forefront of this critical issue.
