After cardiac stents, Centre slashes knee implant prices

As per estimates, the move could result in savings of Rs 1,500 crore annually to patients

requiring knee replacement surgery.

The price of commonly used cromium cobalt knee implants is fixed at Rs 54, 720 and

dominates about 80% of the market.

A day after PM Narendra Modi announced in his Independence day speech that prices of

knee surgery would be brought down, country’s drug price regulator — National

Pharmaceutical Pricing Authority (NPPA) fixed the selling price of knee implants from Rs

54,000 to Rs 1.14 lakh, nearly 70% lower than most surgeries currently cost. Goods and

Services Tax will be extra.

The price for the commonly used cromium cobalt knee implants that rules about 80% of the

market share is fixed at Rs 54,720, which is currently available for between Rs 1 lakh and Rs

1.5 lakh.

Titanium alloy which comes close second will now cost Rs 67, 110 that was available for

about Rs 2 lakh – Rs 2.5 lakh.

NPPA, in a detailed order, has created different slabs based on the implant material and the

part of knee that needs replacement.

Cancer patients needing an implant have been provided major relief, with costs for

specialised implants slashed to Rs 1,13,950 from the current over Rs 5 lakh and above.

As per estimates, the move could result in savings of Rs 1,500 crore annually to patients

requiring knee replacement surgery.

“It is noticed that orthopedic-knee implants are having unjustified, unreasonable and

irrational high trade margins leading to their exorbitant prices which affects the out of pocket

expenses of patients and lakhs of patients are not able to pay for arthroplasty procedures…

the estimates of such patients requiring arthroplasty intervention, both diagnosed and

undiagnosed, is about 1.5 to 2 crores out of which only about 1 lakh plus well off patients are

in a position to pay for it every year,” an excerpt from the order reads.

“After cardiac stents, we have now decided to bring knee implants under price control,” said

Ananth Kumar, minister for chemicals and fertilizer, which NPPA comes under.

“Government will take stringent action against hospitals, importers, retailers if they charge in

excess of the MRP.”

The industry insiders though agree there was a need to rationalize implant prices, however,

there is also skepticism about how much patients will benefit ultimately.

“The implant price, as I see it, will be cheaper by just about 20-25%. There wasn’t a loot

going on as it was made out to be, even though there was a need to regulate prices,” said Dr

Amit Nath Misra, senior orthopaedic surgeon, Apollo Hospital.

A certain section believes, hospitals will find ways to maintain the profit margin.

“Bringing down the cost of the implant may not necessarily mean the cost of procedure will

also come down. Knee replacement procedure isn’t all about the implant cost there are other

costs involved that may go up to maintain a certain profit margin,” said a senior orthopaedic

surgeon at a government hospital.

Source: Hindustan Times