Kozhikode: The Kerala Medical Services Corporation Limited (KMSCL) will have to shell out 40 percent more than the market rate to procure medicines for government-run hospitals.

The additional rate will apply to 54 drugs it has to procure. The anti-rabies vaccine is costing 74 percent more. The Corporation has requested the government to decide on whether to further purchase it at a higher cost.

However, KMSCL has decided to procure antivenom at an additional cost. It will be buying the envenomation drug at a cost 227 percent higher than the market price.

Interestingly, the Corporation has not sought the government's approval to procure 33,100 vials of antivenom despite it having a stock of 24,000 vials. The KMSCL has placed the order for additional vials.

The Corporation issued a procurement notice on Thursday, April 13, indicating that it has not completed the tendering process launched in October last. The notice mentioned that 54 drugs are priced more than the market rate, and 19 pharma companies are unwilling to slash the price.

The KMSCL will place the order with 34 other firms, which have consented to bring down the prices of its drugs closer to the existing market rates.

The notice mentioned that the decision to procure anti-rabies vaccines at a rate 74 per cent than the market price has been left to the government.

However, the Corporation has neither consulted the government nor bargained with the firms before ordering the antivenom, though it has been costing an additional Rs 300 per vial. An order has been placed for antivenom worth Rs 1.70 crore.

Antivenom, which was priced at Rs 235.20 last year, now costs Rs 535.36 per vial.

The state ran out of anti-rabies vaccines last week. As many as 6,222 vials meant for Odisha were diverted to the warehouse in Thrissur on Friday, April 14. This will be distributed among the state's 14 districts.

Since Kerala needs 800 vials of antirabies vaccine a day, the available stock will be exhausted in a week.

What next?
The KMSCL will have to invite tenders for procuring 19 different drugs. The price of the drugs is likely to further increase.

Even if the Corporation decides to purchase the drugs from the local market or procure them through Karunya health-care scheme, it may have to pay more. The KMSCL is in talks with pharma firms for reducing the rate. Still, the rate is higher than the market price.