When it comes to diagnostics, one size fit all just doesn’t work for end user pricing

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We often tend to compare the prices of the diagnostic tests, prescribed by Doctor. This article is intended to convey something as complex as the diagnostic ecosystem and end user pricing in as simple a manner as possible.

There are quick reactions when information about raw material pricing of diagnostics are shared in media reports comparing it to the price an end user pays for the same. Nothing can be farther from the truth, as pricing of tests by labs and hospitals are influenced by multiple factors which tend to vary significantly. Like with most services, there will be a huge variation depending on the location and other factors. It is important to raise this awareness and correct the misconception of the general public.

I am listing most of the factors (not all and by no means exhaustive) that are behind the price variation in diagnostic tests across locations in India:
  • Location - Real estate costs vary hugely across India and these variations are significant even if two diagnostic facilities are separated by just 100 meters.
  • Type of facility and quality of infrastructure - Laboratory or hospital owners make large upfront investments very often with debt that need to be repaid.
  • Some facilities use lot of disposable items apart from evacuated tubes, syringes, needles, bar-coded items, cuvettes and Quality Control, calibration solutions, etc. beside the company supplied reagents to perform the test.
  • Type and brand of equipment - There are obviously significant differences in pricing between different brands of equipment which provide the same service and also based on the features or the technology behind it.
  • Type of method and technology used to perform the tests - Same test can be estimated by different methods eg: rapid, bio-chemical, ELISA, chemiluminescence, and molecular platform.  The cost to perform the test and charges will vary depending on the method.
  • Seniority and experience levels of staff – These again vary from city to city and facility to facility; some facilities may have specialized and experts from medical field.
  • Age of equipment - Newer, sophisticated equipment may differ in price and maintenance costs.
  • Volumes – This plays a major role and in fact varies from test to test; even a large lab or diagnostic center may have low volumes on a certain type of test while a smaller one may have more volumes in that test. 
Besides, diagnostic instrument manufacturers also customize their products to each center or hospital as per the requirements stated or specified by each of them. This impacts the maintenance and support costs. They also price their reagents or services based on the volumes committed by the said laboratory or hospital. 

Right from inception, we at Transasia have been committed to the cause of affordable healthcare. We first manufactured analyzers in India in the early 90’s much before Make in India became a buzzword. We also constantly look at bringing the best of technology from our subsidiaries across the world and at prices that are in line with our commitment to affordable healthcare. We have been closely partnering with labs and hospitals for 40+ years to ensure the equipment are installed, serviced and the technical personnel operating them are well trained.












Authored by:
Anil Jotwani
Sr. President - Sales & Marketing
Transasia Bio-Medicals Ltd.

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