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pinkcheems OP t1_jdqv2el wrote

Reply to comment by readerOP in Private doctors in India are protesting against 'Right to health' bill. by pinkcheems

India have this system called MRP (Maximum retail price). MRP is a manufacturer calculated price that is the highest price that can be charged for a product sold in India. No one can charge more than MRP.

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readerOP t1_jdqwn52 wrote

in medical field the hospitals make deal with pharma reps to get specific brands for their hospitable with higher pricing. this already happens in private clinics where the doc has some deal with a company and prescribes only their meds which are often way more expensive than their otc/generic counterparts

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pinkcheems OP t1_jdqzrbb wrote

India is a price sensitive market so it's a loss-loss situation for both hospital and drug manufacturers. In India you can't write two different MRP on same product.

  1. If manufacturer writes higher price exclusively for hospitals then they will lose general customers. So no manufacturer will raise their prices just for the hospitals.

  2. If hospital charges higher then others he will also lose customers. It's not a monopoly.

You can use this trick to only exploit insurance companies or govt but you will lose general customers. So it's loss making deal.

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henryptung t1_jdshspd wrote

This sounds so much like "competition working as expected to prevent rent extraction" that it's morbidly abusing to see protest over it, as if large profits are some kind of God-given right.

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readerOP t1_jdr2bar wrote

who said they will sell under the same name? generic med companies rarely have contracts with private health care providers. Ever seen a private doctor prescribe crocine/dolo for paracetamol?

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pinkcheems OP t1_jdr635x wrote

India is not a free market like USA. Especially drug prices in india are highly controlled by govt. You should read drug price control order (DPCO) act, 2013 of India. There is a formula provided by govt to calculate MRP of drugs. Here is the example how it is calculated- .

Calculation of ceiling price of a scheduled formulation.– (1) The ceiling price of a scheduled formulation of specified strengths and dosages as specified under the first schedule shall be calculated as under: Step1. First the Average Price to Retailer of the scheduled formulation i.e. P(s) shall be calculated as below: Average Price to Retailer, P(s) = (Sum of prices to retailer of all the brands and generic versions of the medicine having market share more than or equal to one percent of the total market turnover on the basis of moving annual turnover of that medicine) / (Total number of such brands and generic versions of the medicine having market share more than or equal to one percent of total market turnover on the basis of moving annual turnover for that medicine.) Step2. Thereafter, the ceiling price of the scheduled formulation i.e. P(c) shall be calculated as below: P(c) = P(s).(1+M/100), where P(s) = Average Price to Retailer for the same strength and dosage of the medicine as calculated in step1 above. M = % Margin to retailer and its value =16 (2) The ceiling price calculated as per sub-paragraph (1) and notified by the Government shall be applicable to scheduled imported formulations also.

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readerOP t1_jdrb1wt wrote

i think we both are arguing the same point but from different pov, yes there is dpco and subsidiaries exist for this exact reason, the trick is doctors don't directly stock, instead are mediated by the 'nearest' pharmacy, where they carry all brands so they aren't breaking laws, but companies use their expensive subsidiaries, the real profit is not in the drugs that directly treat, but in schedule H analgesics and antipyretics that doctors pad the prescriptions with. Schedule H formulation are quite flexible and companies use this loop hole to push expensive schedule H generic alternatives which if you read carefully are almost similar and could be easily replaceable by dolo or brufein (has a doctor in our family hence i know this) most of the profit is from these than the main drugs that treat whatever condition. Even some doctors don't like this but it's not that big of a deal and helps pay the bills, so they go along.

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likeureallycare t1_jdrx67g wrote

As someone who has to buy medical supplies on a monthly basis for just household usage ( glucose level check stripes, guaze rolls, swabs, Saline, dressing Pads) they are sold at fair(11%) to extremely(70%) discounted prices on MRP to me depending on items in most surgical stores

This is just for private use in smaller tier 2 city , imagine hospitals in tier 1, large tier 2 cities. MRP is very high than sold price and can be used to rake large profits (this is not including inpatient medicines which is also big profit pusher)

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Explorer335 t1_jdsbu9c wrote

It's cool to see the MRP printed on the box for medication from India. In most cases, it's less than the equivalent of $5 USD.

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marvinhal21 t1_jdua0i8 wrote

>No one can charge more than MRP

Is that why upscale places charge upwards of Rs 500 for a bottle of water?

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