After reports of Overcharging- Fortis Healthcare denies overcharging allegation, says it is following norm. In a statement, it said, “Fortis Healthcare does not charge any drug or consumables above the printed MRP and there is No Violation of Drug Price Control Order. They claimed that the end price to the patient is very much in line with what other private hospitals in India charge.”
Looking at individual prices of any single item as a stand-alone takes the margin/profit topic out of context. To understand the total profit scenario and overall business performance, one should look at the financial margins for the Fortis hospital business. As such, it should be noted that the Fortis hospital business reported operating profit (EBITDA) hover the last four published quarters of 5 to 6 percent and a negative PAT(profit after tax) for the same period of time. Medical reporters understand that there is expenditure on product procurement and storage also which shall be taken into account and that is the reason concept of MRP is designed. However, our stand is clear that nothing above MRP should be charged. Respective governments should also look into capping on product MRPs.
The statement comes days after a Haryana Government appointed panel said that Fortis Healthcare, Gurgaon, had committed some irregularities with regard to drug pricing. The regulator has asked Fortis for copies of bills for allegedly overcharging a patient at their Gurugram facility. The hospital charged Jayant Singh nearly Rs 16 lakh for the treatment of his seven-year-old daughter, who died of dengue.
The National Pharmaceutical Pricing Authority has also served a show cause notice to healthcare chain Fortis, asking it for copies of bills in a case where its hospital in Gurugram allegedly overcharged a patient suffering from dengue. The NPPA is mandated to enquire and take action in cases wherever there is a violation of Drug Price Control Order, 2013.”