Several cancer hospitals in the country are making huge profits at the cost of cancer patients by denying the discounts they are due to get from pharma companies on drugs. Pharmaceutical companies usually offer cancer drugs at 40 to 50 per cent lower than their MRP to the patients, but hospitals sell the drugs at their pharmacies at MRP, thus generating a direct trade margin of 20 per cent.
Drugs like Paclitaxel, Docetaxel, Amifostine (chemoprotectants), Gemcitabine, platinum compounds like Oxaliplatin and Tetraplatin which are high value and fast-moving molecules, do not come under price control and hence are priced exorbitantly, between Rs 10,000 to Rs one lakh per vial.
Hospitals, which derive the benefit of low price through low tenders, do not also pass on this to patients. Over 60 per cent of the hospitals with dedicated oncology departments in the country are engaged in this practice and are minting money at the cost of the terminally ill cancer patients, informed sources said.
According to VR Kannan, pharma consultant, if a hospital receives 40 per cent discounted rate on an oncology drug, it can keep 20 per cent for the institution maintenance and should pass the remaining to the patient. Nonetheless, since the patient buys from the hospital pharmacy at MRP, institution is getting a retail margin of 20 per cent. With this practice, it is a known fact that cancer care centres are not for altruistic motive but for profit and therefore enjoy financial gains and makes no effort to help the patient except treating them. This practice is rampant because a nexus exists between the pharma companies and hospitals.
The practice is not a violation of the Drugs and Cosmetics Act as the hospitals can purchase drugs at any price. At the same time, it is a fact that cancer care centres are not like other hospitals because most of their patients are terminally ill. Therefore, patients should get the benefits of saving on drug costs and hospitals should make efforts to provide part of their huge profits to the patients by way of discounts, averred Kannan.
Cancer treatment centres show no mercy at the terminally ill patients by prescribing expensive drugs often with limited success. On an average a minimum treatment cost for drugs and chemotherapy that spans six cycles works out to above Rs 20,000 per session for first line therapy. Even if medical insurance covers cancer, hospitals make the best out of the situation, he added.
A section of oncologists representing hospitals have denied such a practice. They say that there is total sympathy for the patients and there are instances where treatment is given free because they find philanthropists to fund for the medication and care.
Dr BS Ajai Kumar, chairman, Health Care Global Enterprises Limited, stated, "We are only looking at providing both financial and moral support to the cancer cases. In this connection, HCG has teamed up with Sun Moon Pharma in Ahmedabad to manufacture two key oncology generics, Paclitaxel and Docetaxel which are taxoid drugs for which Bristol-Myers Squibb is the innovator. Since the multinational company drugs are exorbitantly priced, the generic versions by us will be provided at 25 per cent lower than available drugs."