The Internal Trade Department, medicine producers and importers and hospitals will next week jointly set a standard price for 200 necessary drugs to ensure consumer protection against overpricing.

Siripol Yodmuangcharoen, director-general of the department, said yesterday that about 500 medicine producers and importers would report their retail prices for 200 types of medicine. The information will facilitate the consideration of standard prices.

Siripol said the government wanted to control medicine prices because they were essential goods.

As a priority, the department will focus on establishing standard prices for the 200 drugs most in demand by patients.

So far, the government's target list contains 12,000 general drugs and 882 generic drugs.

The move comes after an increasing number of complaints about overcharging at private hospitals, he said.

According to the department's survey, private hospitals make profits of up to 200 per cent from medicine sales, compared to 15 to 30 per cent earned by public hospitals.

Private hospitals have increased their service charges by 66 per cent since 2001, while public hospitals increased charges by only 11 per cent over the same period.

Department representatives yesterday met with the Private Hospital Association and representatives from the drug industry to ensure understanding over the new policy to control drug prices.

After setting a standard price list for 200 drugs, the department will send letters to all hospitals and drug traders asking for price quotes in accordance with the department's standard.

Siripol said hospitals and traders would be unable to raise prices above the standard, otherwise they would be penalised under the Products and Service Price Control Act.

Under the Act, violators are subject to a fine of Bt140,000 and/or seven years in jail. Traders who want to increase prices must ask the department's permission 15 days in advance.

The department will send field teams to inspect medicine prices every week.

The department reported that the country's total medicine market had reached Bt57 billion, while the hospital service sector was valued at Bt140 billion.

Petchanet Pratruangkrai

The Nation