Medical device firms, hospitals support margin rationalisation with caveats

The medical device industry and hospital sector have indicated backing for efforts to rationalise trade markups, a move that comes amid ongoing debate over device pricing in India's healthcare market. However, both groups have underscored the importance of tailoring any policy changes to account for the specific operational requirements and procurement models that differ across various device segments.

Medtech firms have cautioned against a one-size-fits-all approach to margin regulation, noting that manufacturing costs, distribution networks, and supply chain complexity vary significantly between categories such as diagnostic equipment, surgical instruments, and implantable devices. Similarly, hospital administrators have stressed that sustainable pricing structures must reflect the genuine costs involved in device procurement, storage, and deployment in clinical settings.

Industry representatives have called for a fact-based methodology that would examine category-specific expenses before implementing any rationalisation framework. The position suggests stakeholders are willing to engage with pricing reform, provided such measures are grounded in comprehensive data analysis rather than blanket reductions that could potentially disrupt supply chains or compromise device availability.

The debate reflects broader efforts in India's healthcare sector to balance affordability and accessibility with the economic viability of the medtech supply ecosystem. Policymakers are expected to consider these inputs as they weigh options for addressing markup concerns while maintaining industry stability.