Report recommends ways to improve availability and affordability of essential medical devices
Posted on June 18, 2024 Updated on June 17, 2024
Incentivising domestic production of essential medical devices, building a robust logistics infrastructure and supplier network with stringent quality control measures and certification standards, and proper pricing policies are some of the ways to grow the medical devices sector in the country and to improve availability and affordability across the country, according to a recent report.
The report on “Impact of the Drugs (Price Control) Order (DPCO,2013) on the Price of Eight Medical Devices, on Industry and Consumers in Terms of Availability and Affordability” by market research agency Datawise prepared for the National Minorities Development and Finance Corporation added that lowering overall costs and distribution margins of essential medical devices is required and this needs a multi-pronged approach involving regulatory interventions, market incentives, and stakeholder collaboration.
“To fortify the manufacturing base for essential medical devices such as glucometers, pulse oximeters, BP monitors, digital thermometers, oxygen concentrators, nebulizers, cardiac/coronary stents, and knee implants, it is imperative to incentivize domestic production. This can be achieved through government subsidies, tax breaks, and streamlined regulatory processes to encourage local manufacturers,” said the report.
Additionally, fostering collaborations between academic institutions, research centres, and industry players can enhance innovation and technological advancement in manufacturing processes, it added.
Bringing various medical devices under Drugs (Prices Control) Order (DPCO), 2013, has notably reduced prices, positively impacting accessibility for consumers. However, it has also raised concerns regarding consumers’ ability to afford out-of-pocket expenses for these devices. Additionally, it has affected product quality, business profitability, sustainability, and the overall market competition within the industry and the Trade Margin Rationalisation (TMR) notification by National Pharmaceutical Pricing Authority (NPPA) has similarly had a significant impact by improving availability and affordability, it said.
Implementing stringent quality control measures and certification standards for suppliers can mitigate risks associated with substandard products. Fostering partnerships
with reputable suppliers and establishing long-term contracts can promote stability and transparency within the supply chain. Investing in infrastructure development, including warehousing facilities and transportation systems, and use of digital technologies can streamline the distribution process and reduce lead times and enhance traceability and transparency, among others.
“To address imbalances in regional prices of essential medical devices, it is crucial to implement a transparent pricing mechanism that takes into account regional disparities in healthcare infrastructure and purchasing power. Leveraging data analytics and market insights can facilitate the formulation of pricing policies that reflect local market dynamics while ensuring affordability and accessibility for patients,” added the report.
Collaborating with healthcare providers and industry stakeholders to monitor price trends and enforce price regulations can help mitigate disparities and promote equitable access to essential medical devices across regions, it added.
Bringing down the overall costs and distribution margins of these medical devices requires a wider approach involving regulatory interventions, market incentives, and stakeholder collaboration. Implementing price controls and trade margin rationalization measures, as mandated by the National Pharmaceutical Pricing Authority (NPPA), can help curb excessive pricing practices and ensure affordability for patients.
Another measure is to promote competition among manufacturers and distributors through fair trade practices and anti-monopoly regulations can foster a more competitive market environment, leading to cost efficiencies and reduced distribution margins. Continuous monitoring and evaluation of pricing policies and market dynamics are essential to ensure the sustainability and effectiveness of cost-reduction initiatives in the long term, it added.
To strengthen the distribution network, strategic partnerships between manufacturers, distributors, and local healthcare providers has to be enhanced, and develop multiple sourcing options from different regions or manufacturers.
Streamlining regulatory processes and offering technical assistance to local manufacturers can expedite the approval and production phases, ensuring a quicker time-to-market for these essential medical devices.
In order to ensure the quality and safety of the products, stringent regulatory oversight and compliance with recognized quality standards is necessary, while the industry must also foster innovation in manufacturing techniques and materials in order to enhance quality standards for the medical devices.
Encouraging competition among manufacturers through streamlined regulatory processes can foster a more diverse market, leading to lower prices due to increased options for consumers are some other recommendations to the industry and to the government. Moreover, incentivising research and
development in these sectors can drive innovation and potentially lower production costs, making these devices more affordable in the long term, added the report.
For standalone hospital pharmacies, forging partnerships with reliable suppliers or manufacturers can ensure a steady and diverse inventory of these devices.
“Negotiating favourable terms with suppliers or bulk purchasing can help in securing these devices at competitive prices, enabling pharmacies to offer them to consumers at more affordable rates,” it added.
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