Group negotiations and pool procurement have delivered an average 85 per cent percent price discount on cancer drugs for cancer centres in the country, that are part of the National Cancer Grid (NCG).
The next step is to take a similar approach – negotiate and procure as a group – for surgical items and possibly medical equipment, Dr CS Pramesh, Director, Tata Memorial Hospital and NCG Convener told businessline.
Funded by the Centre’s Department of Atomic Energy, the NCG is a collaborative network of over 380 cancer centres, research institutes, patient groups and professional societies in India, and 15 other countries. Together they treat over 8,60,000 new patients with cancer annually, or 60 percent of all patients with cancer in India.
The NCG’s group negotiation and pool procurement approach with pharmaceutical companies has been in place since 2019, Dr Pramesh said, and it worked on the 80/20 principle – or 20 per cent of the drugs accounted for 80 percent of the cost.
The most expensive drugs in key cancer hospitals were mapped and price negotiations brought in discounts between 23 percent and 99 percent, he said, adding that the lower discount was for innovator drugs that had no competition or generic variants available.
On an average through, the NCG has been able to get over 85 percent discount on the Maximum Retail Price, consistently since 2019, he said.
The drugs are procured through a tender process, and the quality of the drugs being provided are assessed through a scoring system, before the financial bids are opened, he said, This approach ensures quality drugs are got at a low price and that there are no stock-outs, as they get supplied to centres in remote regions in the country, he pointed out.
The NCG works to streamline treatment protocols, among other things, across centres, with the aim to provide high quality drugs at low cost, he said. The pooled procurement success was among key features discussed at a recent NCG meet in Mumbai.
Other features discussed included the revised treatment protocols that are used for reimbursement by the National Health Authority, implementing the Ayushman Bharat health insurance scheme; quality assurance programmes; capacity building for para-medical staff and all professionals involved with cancer treatment; research training, funding and identifying priorities for low and middle income countries; digital health and electronic medical records; and including patient voices in treatment issues.
Published on August 5, 2025