17 August 2017 | News
Prices capped between Rs. 54,000 and Rs. 1.14 lakh; high flexibility implants will now cost Rs. 56,490 plus GST, which is a cut of 69%
The Centre has fixed a price range between Rs. 54,000 and Rs. 1.14 lakh for knee implants. Also, the price of specialised implants in cancer and tumour cases has been cut to Rs. 1,13,950 from the current price of Rs. 4 lakh to Rs. 9 lakh.
The order also specified that no healthcare institutions such as hospitals, nursing homes and clinics performing orthopaedic surgical procedures shall solicit any patient to purchase knee implants from them in case the patient wishes to procure these from a third party.
The National Pharmaceutical Pricing Authority (NPPA) had maintained that the average trade margin on orthopaedic knee implants were found to be as high as 313%. The move is expected to save an estimated Rs. 1,500 crore annually.
There are 1.5 crore to 2 crore patients who need knee implants. Each year, 1.2 lakh to 1.5 lakh knee surgeries take place in India.
According to the order, the ceiling price will apply to all stocks of knee implants available for sale from the date of publication of the notification.
Under the new price regime, the MRP of the most widely used complete knee implant (cobalt-chromium) has been fixed at Rs. 54,720 plus GST, which is a reduction of 65% from the earlier average MRP of Rs. 1,58,324. This knee implant enjoys 80% of the market share.
The new MRP of the special metal titanium and oxidised zirconium has been fixed at Rs. 76,600 plus GST, down by 69% from an average rate of Rs. 2,49,251. High flexibility implants will now cost Rs. 56,490 plus GST, a cut of 69% from the average MRP of Rs. 1,81,728.