Public hospitals are being overcharged by the government’s drug manufacturing company, Essential Drug Company Limited (EDCL), which has a monopoly on certain supplies to public hospitals.
EDCL is allegedly exploiting its monopoly within public hospitals for commonly used injections by selling them at upto three times the rate charged by other pharmaceutical companies.
Under the rules for public hospitals, when certain essential medicines or injections are produced by EDCL, public hospitals are obliged to purchase them from EDCL without floating any tenders.
With EDCL now producing a wider variety of drugs, including the injections noted, public medical college hospitals are now buying over two thirds of their supplies from EDCL. As the government-owned company is charging excessive amounts for some items, which are readily available at lower cost from private competitors, unnecessary pressure is being placed on the budgets of public hospitals.
The director of Dhaka Medical College Hospital has reported that the rapid increase in the cost of common anti-biotic injections from EDCL is limiting its ability to supply anti-biotics free of cost.
It is incumbent on the government to act in all cases where monopoly powers are abused to the detriment of the public.
That in this case it is a state run company undermining the budget of public hospitals, makes it even more important for the government to take urgent action. If EDCL is not able to produce or sell drugs at competitive prices, its monopoly rights should be removed.