Nepal's 'fair-price' pharmacies get new 'affordable' signs amid criticism

Hospitals across Nepal are rebranding their long-standing fair-price pharmacies as 'affordable pharmacies,' a move that appears to be largely cosmetic. These state-run facilities, including Paropakar Maternity and Women’s Hospital, Bir Hospital, and the National Trauma Centre, have historically offered medicines at significant discounts, often around 40 percent.

The recent change involves replacing old signboards with new 'affordable pharmacy' labels, coinciding with Health Minister Neesha Mehta's showcase of her first 100 days in office. However, staff at these pharmacies express skepticism. "Neither have new medicines been purchased recently, nor have the prices of any medicines been reduced," one pharmacist at the National Trauma Centre stated, requesting anonymity due to fear of reprisal. "The ‘affordable pharmacy’ signboard was installed just a day earlier."

Pharmacists and health officials at several major hospitals have reportedly been warned against speaking to the media, facing potential consequences from ministry officials. Medicine prices are determined by procurement costs, with suppliers competing in tenders to offer prices below the maximum retail price. Hospital pharmacies rely on large quantities of medicines purchased at the start of the fiscal year, with future prices dependent on upcoming tenders.

Former health officials criticize the current administration for claiming credit for initiatives introduced by previous governments. Dr. Jageshwar Gautam, former director of Thapathali Hospital, noted that his hospital established a fair-price pharmacy in 2018 following a government directive. For instance, a 1-gram paracetamol injection with a maximum retail price of Rs 713 is sold at Rs 394 at the Thapathali pharmacy, while a Ceftriaxone 500 mg injection priced at Rs 90 is available for Rs 39.

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Neither have new medicines been purchased recently, nor have the prices of any medicines been reduced. We have been selling medicines at the same prices as we did a year ago. The ‘affordable pharmacy’ signboard was installed just a day earlier.