Health care costs can definitely be reduced by using Generic Medicines Vs Branded Medicines

Various People have been discussing about inflation as well as increase in Health care costs in the country and how it is resulting in more and more families getting into debt trap. The statement of our Health Minister Mr. Ghulam Nabi Azad that every year more than 3.50 crores families get into below the poverty line is an eye opener.

Aamir Khan also realized this as a major social and economic problem of Indian society and has covered this in his TV show ‘Satyamev Jayate’ on May 27, 2012. I was also highly impressed and pleased to read his informative article in HT- May 28, 2012.
An interesting point raised by Aamir is by giving facts & figures of some diseases, medicines, price and difference in the price of branded vs. generic medicines.

Question before us is: - Can hospitalization costs be reduced by using generic medicines?

Yes, we feel definitely the cost can be reduced. The general impression in the market is that quality of branded medicines and that too of reputed companies is much better. Is it correct or is it the impression of common man. Test labs of Government/ Non Government/ even NGO’s can play a significant role in the country by bringing out results- publicize them through print/ electronic/ internet/ Social Media.

There seems to be potential of reducing health insurance claims (paid by insurance companies) by 10% and this can be 10% of Rs 19000 crores- straight Rs 1900 crores. It is a significant figure. Let us try to achieve it for betterment of our society.

Is it possible to reduce health care costs?

Is it possible to reduce health care costs?

It is very easy to increase costs. The challenge comes when you have to answer question
“Is it possible to reduce health care costs?”

The truth is yes, it can be reduced if Tiger biscuits can be produced packed transported & then sold at retail level at Rs.50 per kgm by a reputed company Brittania- then why it is not possible to reduce costs when it comes to Health care.

In health care economies can be achieved by
(a)Standardision on design of hospitals
(b)Standardisalon on equipments to be procured/ installed
(c)Use of generic medicines vs branded medicines

(d)Effective procurement of equipment/medicines by hospitals forming consortium

We are sure the cost can be brought down by 25% and the benefit can be passed on to the consumers.