Pharma cos may bear some healthcare cost
For the first time in the country, pharmaceutical corporations are set to bear part of the healthcare cost of citizens.
By Gireesh Chandra Prasad, TNN |
NEW DELHI: For the first time in the country, pharmaceutical corporations are set to bear part of the healthcare cost of citizens.
Chemicals and fertilisers minister Ram Vilas Paswan is working out a public-private-partnership formula with drug makers, under which companies will contribute a share of their turnover to provide free medicines to people through drug banks and medical camps.
A joint committee of the ministry and the drug industry scheduled for November 25 in the Capital is expected to freeze the commitments of corporates. The ministry has already asked the industry bodies to give their views on the proposed scheme as per which companies have to contribute funds starting from Rs 25 lakh to Rs 1.3 crore/year, depending on their turnover.
This is in addition to a one-time payment of similar amounts. And failure to meet the commitment will mean no annual upward revision of drug prices. As per Mr Paswan’s scheme, a company of Rs 100-250 crore turnover should contribute Rs 25 lakh as a one-time payment and similar amounts every year.
And Rs 250-500 crore turnover companies could provide Rs 50 lakh initially, followed by similar payments every year. Companies with a turnover of Rs 750-1,000 crore could give Rs 1 crore while, bigger companies could give Rs 1.3 crore.
The money will be utilised for implementing district-level sch-emes such as setting up drug banks and medical camps for the poor. Also a cancer assistance fund will be created. If medicines are contributed, half of the MRP will be deemed as their contribution. The meeting is also expected to discuss a 10% voluntary price cut on all 354 essential drugs.
However, industry sources told ET that while they are more than willing to co-operate, the ministry has not even decided whether it should move the Supreme Court for a more practical way of managing prices than price controls. The industry wants a liberal policy in return for participating in PPP schemes.
Chemicals and fertilisers minister Ram Vilas Paswan is working out a public-private-partnership formula with drug makers, under which companies will contribute a share of their turnover to provide free medicines to people through drug banks and medical camps.
A joint committee of the ministry and the drug industry scheduled for November 25 in the Capital is expected to freeze the commitments of corporates. The ministry has already asked the industry bodies to give their views on the proposed scheme as per which companies have to contribute funds starting from Rs 25 lakh to Rs 1.3 crore/year, depending on their turnover.
This is in addition to a one-time payment of similar amounts. And failure to meet the commitment will mean no annual upward revision of drug prices. As per Mr Paswan’s scheme, a company of Rs 100-250 crore turnover should contribute Rs 25 lakh as a one-time payment and similar amounts every year.
And Rs 250-500 crore turnover companies could provide Rs 50 lakh initially, followed by similar payments every year. Companies with a turnover of Rs 750-1,000 crore could give Rs 1 crore while, bigger companies could give Rs 1.3 crore.
The money will be utilised for implementing district-level sch-emes such as setting up drug banks and medical camps for the poor. Also a cancer assistance fund will be created. If medicines are contributed, half of the MRP will be deemed as their contribution. The meeting is also expected to discuss a 10% voluntary price cut on all 354 essential drugs.
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However, industry sources told ET that while they are more than willing to co-operate, the ministry has not even decided whether it should move the Supreme Court for a more practical way of managing prices than price controls. The industry wants a liberal policy in return for participating in PPP schemes.
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