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LATEST NEWS UPDATES | Why NPPA didn't wait for govt to make knee implants 'essential' -Rema Nagarajan

Why NPPA didn't wait for govt to make knee implants 'essential' -Rema Nagarajan

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published Published on Aug 18, 2017   modified Modified on Aug 18, 2017
-The Times of India

In a first for a medical device, the public interest provision in the Drug Price Control Order (DPCO) 2013 was used by the National Pharmaceutical Pricing Authority to cap the price of knee implants. The NPPA cited "exorbitant prices being charged from patients in a non-regulated market" and "a failed market system where asymmetry of information between patient and the doctor has resulted into unethical practices and exorbitant profiteering" to use para 19 of DPCO 2013.

Para 19 states that the government may in extra-ordinary circumstances, if it considers necessary to do so in public interest, fix the ceiling price or retail price of any drug.

NPPA must move urgently under Para 19 to correct the distortions in the existing market for eliminating profiteering and ensure a fair price to people, stated the record of the discussion on ceiling price for knee implants. Making a strong case for the "extraordinary circumstances" called for in Para 19, the authority pointed out that an estimated 1.5 to 2 crore Indians who may be fit for orthopaedic surgery interventions were largely either undiagnosed or are diagnosed but cannot afford the high cost of implants and the knee surgery and thus lead a life of low mobility and productivity. It added that in a failed market system, any further delay in price fixation would deprive patients of likely savings.

Usually, NPPA goes for price capping only when a drug or device is included in schedule-I of DPCO 2013. All drugs included in the NLEM are notified as schedule-I drugs. The price capping of stents had been delayed because each step in the process -- constituting a committee, it deciding to include cardiac stents in the NLEM, and stents being notified as a schedule-I drug - took months. The entire process took almost one and a half years. Price capping of knee implants in contrast has happened in less than six months.

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The Times of India, 17 August, 2017, http://timesofindia.indiatimes.com/india/why-nppa-didnt-wait-for-govt-to-make-knee-implants-essential/articleshow/60106906.cms


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