Hospitals face monetary loss over sudden reduction in vaccines' price

To everyone's surprise, Covaxin-maker Bharat Biotech on Sunday (April 10) slashed the vaccine price from Rs 1,200 to Rs 225 in India. Similarly, the Serum Institute of India followed suit by announcing the reduction of Covishield's cost from Rs 600 to Rs 225. And, the government capped the service charge to Rs 150.

However, private hospitals, which had bought vaccines with MRP face severe financial strain over the sudden reductions in the prices.

With booster shots made available to everybody above 18, many are coming forward to take the precautionary extra bose, but demanding the vaccine price to be Rs 225.
Dr Meena’s Multispeciality Hospital in Mumbai reluctantly accepted the beneficiary's request to offer the dose as per the latest revised rate, Business Standard reported citing the owner Dr Subhash Bhatia.

It has come to light that vaccine-makers have accepted to make up for the losses of hospitals by offering additional stocks of vaccine vials. However, the order has to be a minimum of 500 vials.

But, small health centres may not take up the offer, but other big ones are said to have accepted the deal.

However, some hospitals want to negotiate with customers to make them understand the former's predicament.

“According to discussions with health department officials, the old stocks (300,000 doses of Covishield and 4,000 doses of Covaxin) will be administered at the old rates. We are informing the beneficiary that we are charging according to the price at which we had procured in the past from the Serum Institute of India and Bharat Biotech,” Alok Roy, chairman of eastern India’s Medica Group of Hospitals, said.

Others are waiting for the official communication from the local medical regulatory agency over the pricing of the vaccines and until then, they are pausing the vaccination drive.