Price cap is After All Just a New Price: The Case of Cardiac Stents in India
Authority (NPPA) for fixing the price ceiling for cardiac stents a device that normalises blood supply to the heart brings to fore the old debate on the influence of business in healthcare in India. In view of the increasing number of catheterisation laboratories in the country, and the rise in the use of cardiac stents, this article discusses, inter alia: (a) the role of price controls in controlling costs in health care; (b) the role and interaction of economic regulations and related market forces in managing healthcare costs; (c) the importance of costing systems and outcomes based measurements in managing healthcare costs; and (d) the contribution of evidence based policymaking in managing healthcare costs. The paper suggests that India needs greater transparency in costing systems and outcomes based measurements, and that evidence based policymaking is an imperative. The February 2017 order by the National Pharmaceutical Pricing Price cap is After All Just a New Price: The Case of Cardiac Stents in India