The Association of Healthcare Providers of India (AHPI) has called for a broader, evidence-based assessment of pricing differences involving medicines, medical devices and hospital consumables, saying procurement costs and patient billing prices should not be viewed in isolation.
AHPI Director General Dr Girdhar Gyani said hospitals do not determine the Maximum Retail Price (MRP) printed on medical products. According to AHPI, MRPs are set by manufacturers, while pricing of scheduled products is governed by the applicable regulatory framework. It also noted that non-scheduled medical devices are subject to government regulation, including restrictions on annual price increases.
The association said differences between a hospital’s procurement price and the MRP of a product cannot, by themselves, establish that hospitals and manufacturers are coordinating prices. Procurement costs can vary depending on hospital size, purchase volumes and whether products are sourced directly from manufacturers, wholesalers or retailers.
AHPI also referred to Competition Commission of India proceedings involving 12 Delhi hospitals, saying the orders dated May 21, 2026 examined allegations related to medicines, medical devices and consumables. The association said the CCI noted that hospitals could legally sell products up to the applicable manufacturer-notified MRP and that the proceedings did not establish that the hospitals had billed above the applicable MRP.
The association further argued that procurement discounts and trade margins should not automatically be treated as hospital profits. It said healthcare costs also include expenditure on doctors, nurses and other staff, infrastructure, infection-control systems, diagnostics and other operational requirements.
AHPI said pricing assessments should therefore examine a representative range of products, manufacturers, hospitals and regions while taking into account the different regulatory frameworks governing medicines, devices and consumables.
The association also highlighted the role of package-based billing, particularly in insurance and government healthcare schemes such as Ayushman Bharat, where individual device prices may not directly determine the final amount paid for a procedure.
AHPI said rising healthcare costs need to be examined alongside improvements in clinical care and access to advanced diagnostic and treatment technologies. It reiterated its support for greater transparency and responsible pricing while calling for policy measures based on data covering the entire healthcare supply chain.