The government of India plans capped the price of knee implants, according to The Indian Express.
Here are five things to know:
1. The National Pharmaceutical Pricing Authority analyzed profit margins for orthopedic implants and blamed physicians and hospitals for "unethical practices" that lead to "price distortion." The government decided to cap knee implant price at around 65 percent below current average price.
2. NPPA reported hospitals purchase orthopedic implants at reduced prices from companies and distributors and then sold them to patients based on maximum retail price, according to the report. Before setting the price cap, NPPA consulted domestic and foreign orthopedic device companies as well as industry associations.
3. Orthopedic implant companies discussed the need for high prices with the NPPA, suggesting the margins were paid to the hospitals and distributors. "On being questioned why companies were offering huge margins in trade which could be passed on to consumers, all of them expressed that if they do not pay these margins, distributors and hospitals will not buy their products and rivals will benefit," according to the NPPA statement.
4. Indian physicians are now concerned international companies will withdraw from the Indian market and it could be difficult to use premium implants in the future, according to The Indian Express. Several large orthopedic companies, including Zimmer Biomet and Johnson & Johnson, supply implants to India's private hospitals.
5. The price cap covers both femoral and tibial implants, and the Medical Technology Association of India plans to submit recommendations to NPPA.