1. Introduction

According to AIMED, patients in some cases are paying up to 25 times the factory or landed import cost of certain medical devices used during treatment. This sharp gap between procurement cost and final billed price has raised serious concerns over affordability and transparency in healthcare.

India’s healthcare system is still largely dependent on out-of-pocket spending, meaning a large portion of treatment costs are borne directly by patients and families. Devices such as implants, syringes, catheters, heart valves, infusion sets, and surgical consumables form an important part of hospital bills. When these products are heavily marked up, the total cost of treatment rises significantly. AIMED, which represents nearly 300 domestic manufacturers, has called for urgent reforms to make the medical devices market more patient-centric and fair.

2. Origin and Intent

The issue of high device pricing has evolved over several years as healthcare costs in India steadily increased. Unlike medicines, many medical devices have historically remained outside strict price regulation, allowing wide pricing differences across hospitals and regions. Industry bodies, patient groups, and consumer rights advocates have increasingly argued that the absence of a clear pricing framework has encouraged profiteering in the supply chain.

AIMED has raised this issue through meetings, letters, and policy presentations to the Union government. The core objective behind its demand is to ensure that patients are not overcharged for products that are often essential during surgeries or emergency treatment. Since patients usually cannot choose the brand or compare prices during hospitalisation, hospitals and providers largely control purchasing decisions. AIMED argues that this imbalance makes government intervention necessary to protect consumers and improve transparency.

3. Key Amendments

AIMED has proposed a structured pricing mechanism based on the ex-factory price for domestic goods or landed import cost for imported devices. This base price would then allow only a reasonable trade margin for distributors, retailers, and hospitals, preventing excessive inflation of MRPs.

The association has recommended graded trade margin caps as follows:

• 50 percent for devices priced above ₹1 lakh, such as artificial heart valves 
• 66 percent for devices priced between ₹1,000 and ₹1 lakh, such as pacemakers 
• 75 percent for devices priced below ₹1,000, including syringes, IV sets, and consumables 

AIMED has also suggested mandatory disclosure of procurement prices in hospital bills so that patients can see how much mark-up has been applied. Stronger oversight by the National Pharmaceutical Pricing Authority (NPPA) has also been proposed to monitor unfair billing practices and ensure compliance.

4. Impact

If implemented, these reforms could substantially reduce healthcare costs for patients. A lower mark-up on medical devices would directly reduce hospital bills, especially for surgeries and critical care treatments where devices form a major cost component. This would be particularly beneficial for middle-class families and uninsured patients who bear treatment expenses personally.

The reforms could also improve transparency and trust in private healthcare institutions. When patients know the actual procurement cost of devices, disputes over inflated billing may reduce. In addition, public reimbursement schemes such as the Central Government Health Scheme (CGHS) would benefit, as the government would pay lower treatment reimbursements.

Past examples show that regulation can be effective. Price caps on coronary stents and knee implants reportedly reduced prices by nearly 70 percent, making life-saving procedures more affordable. Similar controls on oxygen concentrators, pulse oximeters, thermometers, and glucometers during and after the pandemic also helped consumers.

5. Conclusion

The demand by AIMED highlights a larger issue in India’s healthcare ecosystem—balancing commercial interests with patient welfare. While hospitals and distributors require sustainable margins, excessive pricing of essential medical devices can make treatment unaffordable for many citizens.

A rational pricing framework based on procurement cost, controlled trade margins, transparent billing, and stronger regulatory monitoring could create a more efficient and equitable market. As India expands healthcare access and promotes domestic manufacturing under the Make in India initiative, fair pricing of medical devices will remain an important policy priority. If implemented effectively, these reforms can lower treatment costs, strengthen trust in the healthcare system, and support long-term growth of India’s medical technology industry