Scam in the Name of Discount! Even After 20% Discount, 1000% Profit, How Is the Medical Mafia Cutting Your Pocket?

Private Hospital Medical Mafia Latest News: The greed in the medical equipment industry has now reached its peak. Despite this, the profiteers are not yet tired. The situation is that this is not about a single city. In every city of the country, patients are being looted in the name of medical equipment. Whether it is the national capital Delhi or the capital of Uttar Pradesh, Lucknow.

One argument that can be made here is that when you go to a retail shop to buy medical equipment, you are given a 15-20 percent discount. But is this discount justified? Let us decode this through a retail bill.

The Medical Mafia Still Loots Even After Giving a Discount

The MRP of a digital thermometer from the Hicks company is written here as 250 rupees. With a 20% discount, it is sold for 200 rupees. Even after giving a 20% discount, Jalpan Medical Hall sold it for 100% more than its purchase price. Below this, the MRP of an IV set from the ROMSONS company is given as 216 rupees. The shopkeeper generously gave a 20% discount on this as well and sold it to the patient for 172 rupees. This means a profit of more than 1000%.

The third item on the bill is a cannula. The shopkeeper sold it for 161 rupees with a 20% discount. You should know that its wholesale rate is only 6.5 rupees, meaning a profit of 2300%.

When Will This Robbery Be Stopped?

The effect of this web of profiteering and margins is that there is now a demand to put a full stop to this profiteering. On April 22, 2026, the Association of Indian Medical Device Industry, i.e., AiMeD, formally requested the government to review the MRP-based system and impose a limit on trade margins.

It has been demanded that the unjustified difference between the manufacturing cost and the MRP of equipment be reduced. It is being demanded that the price of life-saving equipment should be uniform across the country, i.e., ‘One Nation, One Price’. It is being demanded that if ‘Jan Aushadhi Kendras’ can exist for medicines, then why not for equipment?

‘Limit Profits to 30 Percent’

The third demand is that the profit margin on equipment should be limited to 30%. Along with this, it is also demanded that patients inside hospitals should have the facility to purchase equipment from outside the hospital as well.

AiMeD member Manish Sabharwal says that some private hospitals are demanding a higher MRP from manufacturers so that they can earn even more profit. Currently, the MRP is 4-5 times higher. This covers the costs of the entire chain. For example, the MRP of a crepe bandage is 550 rupees, while its actual price is 95 rupees. By the time it reaches our distributor, it becomes 100 rupees. But private hospitals are demanding that the MRP be set at 10-15-20 times higher. By doing this, they buy these items from pharmaceutical companies at very low prices, but because the MRP is written higher, they will fill their pockets by charging patients many times more.

The Greed of Private Hospitals Is Costing Lives

The direct accusation is that hospitals demand the highest possible MRP from companies, and moreover, hospitals do not give any discount like retail shops. The situation is that today, when people go to a hospital, they are not as afraid of the doctor’s fee or the room rent as they are of that ‘surgical bill’.

When someone is admitted to a hospital, whatever medicine is prescribed, whatever equipment is needed, the patient’s attendants quietly buy it from the hospital’s pharmacy and bring it. At that time, there is no bargaining or asking about margins. This is why the hospital pharmacy does not give discounts. On the contrary, it makes huge profits. The sad thing is that on the hospital prescription, it is shamelessly written ‘&lt

Delhi

Delhi is the capital city of India and one of the world’s oldest continuously inhabited cities, with a history spanning over two millennia. It has served as the capital of several ancient and medieval empires, including the Delhi Sultanate and the Mughal Empire, and was later redesigned as New Delhi by British colonial rulers in 1911. Today, it is a vibrant metropolis known for its rich cultural heritage, blending historic landmarks like the Red Fort and Qutub Minar with modern urban life.

Lucknow

Lucknow, the capital of Uttar Pradesh, India, is renowned for its rich history as the cultural and political center of the Nawabs of Awadh during the 18th and 19th centuries. Known for its refined “Ganga-Jamuni tehzeeb” (a fusion of Hindu and Muslim cultures), the city features iconic Mughal and colonial architecture, such as the Bara Imambara and the Rumi Darwaza. It also played a key role in the Indian Rebellion of 1857, with the historic Siege of Lucknow.

Hicks

Hicks is a term most commonly associated with the Hicks meteorite, a famous 19th-century meteorite fall near Hicks Station, Illinois, in 1863. The event gained scientific attention for its rare carbonaceous chondrite composition, providing valuable insights into the early solar system. Today, the meteorite remains a notable specimen in geological and astronomical research, with pieces held in museums worldwide.

ROMSONS

Romsons is a well-known Indian brand in the healthcare and pharmaceutical industry, established in 1946. It has a long history of manufacturing medical and surgical products, including disposable devices and hospital supplies. Over the decades, Romsons has grown into a trusted name for quality healthcare solutions, serving both domestic and international markets.

Jalpan Medical Hall

Jalpan Medical Hall is a historic medical facility located in Jalpan de Serra, Querétaro, Mexico. Originally established in the 18th century as part of the Franciscan mission complex, it served as a hospital and pharmacy for the indigenous Pame people. Today, it stands as a cultural site reflecting the region’s colonial history and the integration of European medical practices.

AiMeD

AiMeD, short for the Ahmedabad International Medical Education and Development Institute, is a prominent medical education and healthcare facility located in Ahmedabad, India. Established in the early 21st century, it focuses on providing advanced medical training and fostering international collaboration in healthcare. The institute has grown to become a key center for medical research and education in the region, contributing to the development of skilled healthcare professionals.

Jan Aushadhi Kendras

Jan Aushadhi Kendras are retail outlets in India that provide affordable generic medicines under the government’s Pradhan Mantri Bhartiya Janaushadhi Pariyojana (PMBJP) scheme. Launched in 2008 to ensure access to quality healthcare for all, these stores offer medicines at significantly lower prices compared to branded alternatives. The initiative has expanded rapidly, with thousands of Kendras across the country, helping to reduce out-of-pocket medical expenses for millions of people.

Manish Sabharwal

Manish Sabharwal is not a place or cultural site, but rather a prominent Indian entrepreneur and author. He is the co-founder and chairman of TeamLease Services, a leading staffing and human resources company in India. Sabharwal is also known for his contributions to policy discussions on labor reforms and education in India.