UP orders price transparency in hospital pharmacies

The move follows the FSDA’s findings of wide differences between the purchase price of medicines and their MRP or sale price

Patients in Uttar Pradesh will soon be able to check not only the price at which a medicine is sold to them but, in hospital pharmacies, the price at which it was purchased. The Uttar Pradesh Food Safety and Drug Administration (UPFSDA) has directed pharmacies across the state to create public websites and disclose details of licences, pharmacists, medicine prices and weekly stock.

For representation only (HT File Photo)

The move follows the department’s findings of wide differences between the purchase price of medicines and their MRP or sale price, particularly at hospital pharmacies, where in-patients often have little choice but to buy medicines from the hospital pharmacy.

Under the new directions, hospital pharmacies and those serving in-patients will have to publish the Price to Retail (PTR) and Price to Consumer (PTC) of medicines on their websites, along with the manufacturer, brand and generic names.

PTR will show the price at which the pharmacy purchases a medicine from the manufacturer or marketer, while PTC will show the price charged to the patient.

The department said enforcement action in recent months found instances where manufacturers, marketing companies and stockists supplied medicines to hospital pharmacies at substantial discounts, with the purchase price in some cases several times lower than the MRP. The disclosure is intended to show whether patients receive the benefit of such institutional discounts.

The directions, issued by FSDA commissioner Roshan Jacob, cite Paragraph 25 of the Drug Prices Control Order (DPCO), 2013, which requires retailers and dealers to prominently display manufacturers’ or importers’ price lists at their premises.

The requirements will apply beyond medicine prices. Every retail pharmacy in the state will have to create a public website displaying its name, drug licence number, licence-holder’s name and address, as well as the name, registration number and photograph of the pharmacist.

Pharmacies will also have to update their stock information weekly. The website address must be prominently displayed at the counter, with access also provided through a QR code or app so customers can check the information on their phones.

The department clarified that the initiative is not a price-control measure, but a mandatory public disclosure system aimed at improving transparency in medicine procurement and sale.

The FSDA has also flagged unusually large gaps between purchase prices and MRP as a matter warranting scrutiny, including over the quality and authenticity of medicines. It referred to the Supreme Court matter Sanjay Kulshrestha vs Union of India & Others while explaining the context of the directions.

The new system is expected to give patients greater visibility into pharmacy operations and, particularly in hospitals, allow them to compare the actual procurement price with the price charged to them.