NEW DELHI: The Competition Commission of India ( CCI ), India’s fair trade regulator, has locked its sights on unfair practices in the country’s billion-dollar pharmaceuticals and healthcare sectors, calling for proposals to study the nature and magnitude of the problem. The decision comes amid concerns of a continued nexus between companies, doctors and hospitals that keeps patients from accessing high quality, affordable treatment here.The body has submitted a request for proposals from agencies to conduct a study on the sector that would help it eliminate anti-competitive practices, protect interests of patients and ensure freedom of trade in this industry.“In the enforcement experience of the Commission, several anti-competitive practices in the Indian pharmaceutical and healthcare sector have come to the fore,” stated CCI in its Request for Proposal (RFP).The proposed study is expected to analyse the referral pattern of hospitals and medical practitioners as well as the tie-ups and “networking” amongst various stakeholders in the healthcare sector. Medical representatives, Third Party Administrators and lobby groups will also figure in the studies.The body initially expects to engage an agency to conduct a pilot study on a smaller sample within four months of awarding the contract.This request comes around two years after CCI first sought to scrutinise competition issues in pharma and healthcare. In September 2015, the body invited consulting firms, institutions and organisations to study the pharma sector and healthcare delivery systems or services in Delhi NCR.The commission had stated then that it had come across various issues in the sector, including non-availability of essential medicines, increasing drug prices and a nexus between drug companies, pharmacists, doctors, diagnostic labs, hospitals and insurance companies.India’s pharmaceuticals sector was valued at $ 27.57 billion in 2016 and is expected to touch $55 billion by 2020, according to the Indian Brand Equity Foundation. The country’s healthcare sector is expected to reach $280 billion in the same time.The medical devices industry here was valued at $4.9 billion in 2016, according to a new report by Deloitte and the Confederation of Indian Industry.

Source: Economic Times September 08, 2017 19:52 UTC