NEW DELHI: The Medical Technology Association of India (MTaI) on Wednesday said the government has begun to acknowledge the financial pressures on medical device firms and allowed them to increase the price of knee implants by 10 per cent in the next one year.
The government on Tuesday had said the ceiling price of orthopaedic knee implants will be monitored to ensure that the cost does not increase beyond 10 per cent in a given year and this shall be subject to a review after one year.
"We were seeking a 20 per cent increase in selling price of knee implants to make up for two years of price control combined with continuing pressures of rupee devaluation and inflation," MTaI Chairman Pavan Choudary said in a statement.
It is "reassuring that the government has begun to acknowledge the financial pressures on medical device companies and has decided to give a partial relief by letting companies increase the price by 10 per cent in next one year, as per Para 20 of DPCO, 2013", he added.
"As we move ahead, we will continue to engage with the government for a long-term solution," Choudary said.
The National Pharmaceutical Pricing Authority had notified the ceiling price of orthopaedic knee implants on August 16, 2017, by invoking extraordinary powers, in public interest, under Para 19 of the Drugs Prices Control Order (DPCO) 2013, for a period of one year.
Subsequently, the applicability of ceiling prices fixed for orthopaedic knee implants was extended for another year, up to August 15, 2019.
Accordingly, the cost of knee implants was reduced significantly, up to 69 per cent, resulting in a notional saving of Rs 1,500 crore per annum to the consumers, the government had said in an official statement on Tuesday.
The knee implant is a non-scheduled medical device for which DPCO, 2013, allows an annual increase up to 10 per cent of MRP. However, this was not permitted in 2018, it added.