Interplay between business
relations and corporate
conduct in H.P.
An update on Pharmaceuticals
and
Private Healthcare sectors
Study by
Gunjan Organisation for Community
Development
Dharmshala H.P.
Overview of the Pharmaceuticals and Private
Healthcare sectors in the States
► There
is concentration of pharmaceutical
manufacturing units in Solan and Sirmaur district.
► Most of the units are small and medium
(approximately 70% ) and rest are large units.
► Bulk drug pharma units are less in number and
most of the units are working on formulation.
► Most of the hospitals in private set up are small
units ranges 10 to 30 beds.
► Small units are developed to cater small clusters as
population is scattered.
Focused districts
• Solan
• Baddi
• Barodiwala
• Shimla
• Kangra
• Dharmsala
• Palampur
• Sirmaur
Methodology for field-work
The following activities were undertaken during the
FACT FINDING mission:
►Qualitative interviews with relevant stakeholders
►Gathered relevant literature (academia, NGOs, other
sources)/Govt. reports/newspaper reports)
►Identifying sources of information needed for the
research
►Identified ‘key stakeholders’ (govt. departments,
regulators, associations, NGOs, individuals, etc.)
►Identified institutions to seek support in research
activities like different departments of universities,
Methodology for field-work
► Primary
advocacy was done during the
inception meeting in which representatives of
stake holders were explained about the
research goals, objectives and process.
► Introductory letter was sent to selected
pharmaceutical companies and private
hospitals.
► Team was trained on questionnaires and
possible frequently asked questions were
discussed during the orientation
Methodology for field-work
► Coordination
office was established at
organisation level and one staff was engaged
for the coordination between teams working in
the field and the Pharma units and Private
hospitals to be visited
► Support from Government agencies like
Pollution Control Board, District Industry Centre
was also taken to take the appointment from
the companies.
► Support from CII, federations were also sought
though federations are not that effective in H.P.
Status of field work
Sr.
No.
Sample
Size
Sample
achieved
%
Pharmaceutical
1. Firms
40
20
50 %
2. Private Hospitals
50
23
46 %
Medical
3. Representatives
50
50
100 %
250
128
51 %
Particulars
Prescription
4. Collection
Challenges during the field-work
• Most of the companies and
7 licenses of drug units
suspended
Ambika Sharma
Solan, May 15
With cases of substandard drugs involving
violation of various manufacturing norms
emerging in the Baddi-Barotiwala-Nalagarh
(BBN) industrial area every now and then,
the regulatory mechanism seems to be
insufficient to keep track of 600
manufacturing units in the state.
In the latest case, various ferrous ascorbate
and folic acid tablets manufactured by two
manufacturers of the BBN area have been
found to have more than the prescribed limit
of certain ferrous salts.
private hospitals are reluctant
to answer.
• This news has given the bad
impact as we had just started
the process in the field.
• Hot and humid weather was
a challenge for the field team
Evidence suggesting violation of ‘Business
Responsibility’ in the 2 sectors
•

►
►
Evidence on pollution sensitivity as this is the most sensitive
issue for H.P.
• Pharma Companies
Disposal of sewage &
waste in conformity with
requirement of SPCB
Standard operating
procedures for sampling,
inspecting and testing of
raw materials
Verification of
environmental procedures
Filling products in powder
form exercised with
special care so as to avoid
contamination of
environment
All of these
27%
27%
22%
16%
16%
Private hospitals claim regarding Bio waste management but
data shows that 78% are not aware about the process of
quality bio waste management and its procedures
Most of the firms are recognising GMP, if discussed about
standard of procedures, knowledge level is almost negligible.
30% firms have faced regulatory action from SPCB.
► When
asked “Do you think the implementation
of regulatory laws should be different on the
basis of size of firms (Large and SMEs)” 90%
were not in favour of it
► 80% of the firms said that they need technical
support and trainings from Government on
environmental issues
► Most of the firms and hospitals are investing
funds in CSR for their image in the society
► Not a single firm and hospital is aware about
National Voluntary Guidelines on Social,
Environmental and Economic Responsibilities of
Business (NVGs)
► Most
of the marketing is being done through
middlemen and MRs
► 80% firms sponsor events for the doctors
► 68% firms and 51% hospitals are not aware
about “Code of Medical Ethics Regulations,
2002 - Medical Council of India”
► 76% firms and 95% hospitals are unaware
about “UCPMP” Uniform Code for
Pharmaceutical Marketing Practices
► There is no interaction of hospitals with state
medical council and minimal with other
agencies
► 80%hospitals are not part of any association
► Almost
80% don’t have any guideline on
Rational Use of Drugs in the hospital
► Though 90% hospitals agreed that
prescription audit should be mandatory but
when conducted by team they refused for
the same.
► 60% hospital don’t agree for standard
treatment protocols
► As far as quality assessment of Bio medical
waste is concerned none of the hospital has
taken any steps on this issue
Social
1.
Social responsibilities are forgotten in Pharma firms as
the budget which would be for CSR is being spent for
Marketing
2.
Business values are changing, cuts & commission is well
accepted trade practice
3.
Self regulation is becoming second responsibility for the
sector
4.
Doctor-patient relationship has lost its spirit, patient has
become a costumer for doctor.
Drivers/Factors influencing Business
Responsibility
► Subsidies
provided by the government to
establish manufacturing units
► Low cost labour
► Non performance of enforcement agencies
► Overheads like commissions for the
marketing is giving impact on drug cost
► Patients are paying high cost of treatment
for unnecessary tests and prescribed
medicines