Medical device equipment: The report suggests strategies to enhance accessibility and cost-effectiveness of crucial medical device equipment.
Medical device equipment Encouraging the local production of vital medical equipment, establishing a reliable logistics network and supplier system with strict quality control measures and certification standards, and implementing appropriate pricing strategies are highlighted as key methods to enhance the medical devices sector within the nation and to enhance accessibility and affordability nationwide, according to a recent study.
Assessment of the Effects of the Drugs (Price Control) Order (DPCO, 2013) on the Pricing of Eight Medical Devices
The analysis, titled “Assessment of the Effects of the Drugs (Price Control) Order (DPCO, 2013) on the Pricing of Eight Medical Devices, on Industry and Consumers in Terms of Accessibility and Affordability,” conducted by market research firm Datawise for the National Minorities Development and Finance Corporation, underscores the necessity to reduce overall expenses and distribution margins of crucial medical devices. This necessitates a comprehensive strategy involving regulatory measures, market incentives, and collaboration among stakeholders.
The report emphasizes the need to strengthen the local manufacturing capacity for essential medical devices such as glucometers, pulse oximeters, BP monitors, digital thermometers, oxygen concentrators, nebulizers, cardiac/coronary stents, and knee implants. It suggests that this can be achieved through government subsidies, tax incentives, and simplification of regulatory procedures to stimulate domestic producers.
Furthermore, promoting collaborations among academic institutions, research centers, and industry stakeholders can drive innovation and technological progress in manufacturing processes, the report emphasized.
The inclusion of various medical devices under the Drugs (Prices Control) Order (DPCO), 2013, has notably slashed prices, positively impacting consumer accessibility. However, it has also sparked concerns regarding consumers’ ability to cover out-of-pocket expenses for these devices. Moreover, it has influenced product quality, business profitability, sustainability, and overall market competition within the industry. The Trade Margin Rationalisation (TMR) notification by the National Pharmaceutical Pricing Authority (NPPA) has similarly wielded significant influence by enhancing availability and affordability, the report noted.
Enforcing rigorous quality control measures and certification standards for suppliers can mitigate risks associated with inferior products. Cultivating partnerships with reputable suppliers and forging long-term contracts can foster stability and transparency within the supply chain. Investments in infrastructure development, such as warehousing facilities and transportation systems, coupled with the adoption of digital technologies, can streamline the distribution process, cut lead times, and bolster traceability and transparency, among other benefits.
The report emphasizes the importance of establishing a transparent pricing mechanism to tackle regional price disparities of vital medical devices. This mechanism should consider variations in healthcare infrastructure and purchasing power across different regions. By harnessing data analytics and market insights, pricing policies can be tailored to local market conditions while keeping medical devices affordable and accessible to patients.
Furthermore, collaboration with healthcare providers and industry stakeholders is essential to monitor price trends and enforce regulations, thus promoting fair access to medical devices across regions.
Reducing overall costs and distribution margins of medical devices requires a comprehensive strategy involving regulatory interventions, market incentives, and stakeholder engagement. Measures such as implementing price controls and rationalizing trade margins, as mandated by authorities like the National Pharmaceutical Pricing Authority (NPPA), can prevent overpricing and enhance affordability.
Encouraging competition among manufacturers and distributors through fair trade practices and anti-monopoly regulations is another effective approach. This fosters a more competitive market environment, leading to cost efficiencies and decreased distribution margins. Continuous monitoring and evaluation of pricing policies and market dynamics are crucial to ensure the sustainability and efficacy of cost-reduction efforts in the long run.
To fortify the distribution network, it’s crucial to bolster strategic collaborations among manufacturers, distributors, and local healthcare providers. This involves expanding partnerships and diversifying sourcing options across various regions or suppliers.
Efforts should focus on streamlining regulatory procedures and providing technical support to local manufacturers to accelerate approval and production timelines, thereby expediting the delivery of vital medical devices to the market.
Ensuring product quality and safety necessitates rigorous regulatory supervision and adherence to established quality standards. Simultaneously, the industry should promote innovation in manufacturing methods and materials to elevate quality benchmarks for medical devices.
Promoting competition among manufacturers through streamlined regulations can foster a more dynamic market, potentially driving down prices by offering consumers a broader array of choices. Additionally, incentivizing research and development initiatives in these sectors can spur innovation and potentially reduce production costs, ultimately making these devices more accessible over the long haul, as highlighted in the report.
Establishing collaborations with dependable suppliers or manufacturers is crucial for independent hospital pharmacies to maintain a consistent and varied stock of these medical devices.
The article suggests that by engaging in negotiations for advantageous terms with suppliers or through bulk purchases, pharmacies can procure these devices at competitive prices. This approach enables pharmacies to provide consumers with these products at more accessible rates.