Govt to begin “collective bargaining” for medical devices under AB-PMJAY

The government is likely to begin “collective bargaining” for medical devices that hospitals use for procedures under the cover of Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB-PMJAY). The main purpose behind the idea is to procure essential medical devices make available in the Government e-Marketplace (GeM). Accordingly, the empanelled hospitals will buy those medical devices from the GeM. Presently, PMJAY does not have any system of centralised procurement of medicines or devices. The scheme has a defined annual benefit cover of Rs 5 lakh per family for hospitalisation. It follows an insurance model and aims to cover 10 million families, or roughly 40% of the country’s population based on the socio-economic and caste census database. As per a senior government official, “The plan is to do “collective bargaining” for certain medical devices and implants by assuring a bulk requirement to the manufacturers. The requirement for these devices runs into millions. We assure them that the requirement is going to be in bulk. In return, they should offer us better rates.” The government also plans to procure cancer medicines at prices lower than those capped by the National Pharmaceutical Pricing Authority (NPPA). “PMJAY rates could be lower than the prevalent rates by the NPPA. We can provide these medicines to our hospitals at lower rates,” said the official source.