Andhra government to set up Jan Aushadhi shops at all GGHs to curb overpricing on drugs
Health Minister Y Satya Kumar Yadav approved the initiative following a review of existing private medical stores operating at 16 GGHs. Currently, 23 private stores operate in these hospitals, while Nandyal GGH has none. These stores have been flagged for charging profit margins ranging from 50% to 600% on certain drugs, officials said.
The proposed Jan Aushadi outlets will be run by the Indian Red Cross Society under the Pradhan Mantri Bharatiya Jan Aushadi Pariyojana (PM-BJAP). The scheme mandates a maximum profit margin of 15%, aiming to prevent price exploitation. Sales will be monitored using software developed by the Department of Pharmaceuticals to ensure pricing transparency.
Officials highlighted that many private stores currently operate under the guise of self-help groups or cooperative societies but exploit pricing loopholes, sell branded drugs without prescriptions, and stock only 30% to 40% of essential generic medicines.
Jan Aushadhi shops will primarily stock generic drugs, with exceptions for branded medicines permitted only with prior approval and when generic alternatives are unavailable.
Minister Yadav has also directed health officials to assess the feasibility of expanding Jan Aushadhi outlets to District and Area Hospitals, given the higher patient footfall in these facilities.
District Collectors, who head local Red Cross branches, will oversee the rollout and functioning of these stores to ensure accountability and better patient service, officials added.
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