The Competition Commission of India found Max Super Specialty Hospital and Becton Dickson India guilty of colluding to overcharge patients for disposable syringes. A complaint alleged that the hospital pharmacy sold Becton Dickson syringes for double the open market price. An investigation found the same syringes were sold cheaper in other stores. The CCI ordered an investigation into whether the hospital and company violated competition laws by abusing their position to increase profits through inflated prices.

1. Syringemaker, hospital
gouging patients: CCI
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2. Contd…
The Competition Com mission of India (CCI) has found Max Super Specialty
Hospital, Patparganj, Delhi and Becton Dickson India Pvt Ltd, a manufacturer
of disposable syringes, prima facie guilty of colluding to sell disposal syringes
from the hospital's in house pharmacy at double the open market price.The
CCI has asked its di rector general to investigate the issue within 60 days and
to fix responsibility on officials or persons who were in charge in the two
establishments if it found that the Competition Act 2002 was violated.
According to the complaint filed by Vijay Sharma, he had purchased a
disposable syringe of a particular brand of Becton Dickson of a specified size
from the in house pharmacy of Max hospital in Patparganj for Rs 19.50, the
maximum retail price (MRP) printed on it. Later, when Sharma purchased the
same syringe of the same company , brand and quality from a store in Ashok
Vihar he had to pay only Rs 10 against a printed MRP of Rs 11.50.
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3. Contd…
Sharma filed a complaint that the company in collusion with Max hospital
was supplying syringes with a higher MRP printed on them to cheat patients.
He pointed out that in the inhouse pharmacy , the hospital stocked only
syringes manufactured by Becton Dickson, leaving patients with no choice.
Also, the company was printing a higher MRP on syringes supplied to Max
than those being supplied in the open market to increase prof it margins for
both the hospital and itself. Sharma pointed out that Becton Dickson being
the sole supplier of dis possible syringes to the hospital, was abusing its
dominant position.
The CCI observed the once a patient is admitted in a hospital of the Max
Group, he or she hardly has any option to purchase from the open market
and that taking advantage of such a situation, the hospital in connivance
with Becton Dickson had charged a higher price by raising the MRP , which
was unfair.
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4. Contd…
Bejon Mishra, a consumer activist of the organisation Partnership for Safe
Medicine, said such collusion between manufacturers or importers and hospitals to
arbitrarily fix prices to fleece consumers indicated the need for the government to
step in to protect consumers with a price capping mechanism or taxation linked to
the MRP. “Gullible consumers have no idea about prices of competing medical
devices and rely solely on the printed price or their faith in the hospital or doctor,“
he added.
“A common man ends up paying a high price for these devices as he is not offered
any choice by the hospitals who insist that anything from multinational companies
is better than those made in India,“ said Gurmit Singh of Translumina, a domestic
manufacturer of drug eluting stents and joint forum coordinator of the Association
of Indian Medical Device Industry (AIMED). He added that this was why the
government was trying to cap prices through the National Pharmaceutical Pricing
Authority (NPPA), for which a meeting was called earlier this week to discuss the
disparity in MRP .
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