The Maharashtra Food and Drug Administration (FDA) has barred hospitals, medical practitioners and affiliated pharmacies across the state from compelling patients to purchase medicines exclusively from pharmacies located within or attached to hospital premises.
In an order dated June 12, FDA Commissioner Tukaram Mundhe directed hospitals and doctors to hand over prescriptions directly to patients or their relatives, and prohibited prescriptions from being routed to in-house or affiliated pharmacies without the patient’s consent.
“Hospitals sometimes compel patients to purchase medicines only from pharmacies owned by or attached to the hospital, refuse to provide prescriptions, withhold prescriptions, or send prescriptions directly to the hospital pharmacy without patient consent,” the order stated.
Such practices deprive patients of the opportunity to purchase medicines from a pharmacy of their choice and undermine their consumer rights, it said. The FDA said withholding prescriptions or directing patients to specific pharmacies amounts to an unfair trade practice under the Consumer Protection Act, 2019.
Mundhe also directed doctors and hospitals not to refuse prescriptions and to inform patients that they are free to purchase medicines from any licenced pharmacy.
All hospitals have been asked to prominently display notices in Marathi and English stating: “Patients are not compelled to purchase medicines solely from the pharmacy located within this hospital. Patients or their relatives can purchase medicines from any licensed pharmacy.”
The order warned that appropriate legal action could be initiated against institutions found violating the directive.
Mundhe has directed divisional joint commissioners, assistant commissioners and drug inspectors across the state to communicate the order to hospitals and practitioners within their jurisdictions, and verify compliance during routine inspections.
The Maharashtra FDA’s directive comes weeks after the Competition Commission of India (CCI) declined to fully endorse findings by its investigative arm in a separate probe involving 12 Delhi-based private hospitals accused of forcing patients to use in-house pharmacy facilities.
The Commission had held that super-specialty hospitals do not automatically constitute separate monopoly “aftermarkets” for admitted patients, merely because patients rely on hospital-run pharmacies, diagnostics and consumables after admission.
At the same time, the CCI acknowledged that hospitals can create significant practical lock-in effects that leave admitted patients heavily dependent on internal facilities for medicines, tests and related services.
The case originated from a 2015 complaint alleging that syringe maker Becton Dickinson and Max Super Specialty Hospital, Patparganj, colluded to sell syringes carrying higher maximum retail prices through the hospital’s in-house pharmacy.
The CCI, however, observed that patients are generally provided estimated treatment costs before admission, including broad break-ups covering procedures, room charges, medicines and consumables, allowing them to compare overall treatment expenses before choosing a hospital.
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