Despite a long history of battles and a still-intact fort, dusty, small-town 
Chittorgarh doesn�t quite look like a place where revolutions still happen. But 
thanks to a project that started last July, this hilly district in south 
Rajasthan has quietly overthrown the prevailing regime of high-priced 
medicines�a key failure of India�s healthcare system. In its stead, it has 
introduced another that dramatically lowers the cost of drugs, making access to 
healthcare easier for even the very poor. The usual �medical shops� that sell 
at maximum retail price still exist, but in 16 stores run by the Central 
Cooperative Bank essential medicines are being supplied as part of a �Generic 
Drugs Initiative��prices here are 40-50, sometimes 90 per cent lower.

Chittorgarh is among the 50 worst performing districts on the human development 
index, with poverty widespread and access to social services dismal at best. 
It�s in this milieu that the cooperative stores have come forward to sell 
generic versions of hundreds (564 to be precise) of drugs. The stores have 
opened near hospitals and, no surprises, patients are flocking to them. So much 
so, the administration now believes there�s room for a further drop in prices.

Another round of price cuts may sound far-fetched�the popular stress relief 
medicine Diazepam, for instance, already sells at the cooperative store for Rs 
2.48 per injection instead of the usual Rs 21. Similarly, the price of a 
two-day supply of the blood pressure-regulating drug, Simvastatin, has gone 
down from Rs 120 to less than Rs 35. The cooperatives manage the price cuts 
because they sell only generic versions�copies of drugs whose patents have 
expired. The law says once the patent expires on a medicine, any drug company 
can manufacture it. Without the associated R&D, marketing and advertising 
costs, generics can retail at far lower prices.

N.C. Saxena, who assists on UNICEF health and access projects, says that 
�unlike the rest of the country where regulating drug prices has become a very 
difficult task, the Chittorgarh model shows how much a government can achieve 
if it decides to make cheaper medicines accessible�. But it�s not always about 
prices, for many patients have doubts about the efficacy of generics. At the 
same time, for Indians 80 per cent of healthcare spends come out of their own 
pocket, and most of this goes for medicines. For Dr Samit Sharma, Chittorgarh 
district collector since July 2008, it was imperative that change happened in 
both areas.

***

�The Chittorgarh model shows how much a government can achieve if it makes 
cheaper medicines accessible.�

 �N.C. Saxena, Consultant, UNICEF

***

First, he tightened the grip on government-run hospitals and its doctors. They 
were disallowed from prescribing medicines by brand names; doctors can now only 
prescribe a �salt� name�the final choice of drug to be bought, generic or 
branded, remains with the patient. Sharma then launched a campaign to promote 
generics: every third street corner in Chittorgarh and the government-run 
community health centre in nearby village Bassi have signs emblazoned��Buy 
generic drugs: They cost less� or �Ask your doctor for generic medicines: They 
are just as effective.� The messages were placed on prescriptions as well. 
Needless to add, doctor�s prescriptions are also being monitored.

The results were encouraging. Doctors in the town�which has two large hospitals 
and about 50 private doctors� practices�report that patient numbers have 
increased by 15-40 per cent, a sign that people are now more confident that 
they can afford medical care. The state�s medical bill for pensioners and 
others (who access the government health system) has also declined for the 
first time, by about Rs 4 crore, mostly because people are spending less on 
medicines.

Sharma, who was a doctor in Jaipur before he sat for the ias, is now a 
household name�even rickshaw drivers will tell you about him. �If the 
government is serious about reducing healthcare costs, it will have to take 
some cost-related measures�either price controls or ensuring that doctors 
prescribe generics,� says Sharma. In fact, similar orders have been passed all 
over the country (by the Medical Council of India in 2002) but no one has seen 
about implementation.

But when it�s tackled, medicines seem to be one field where the trickledown 
theory has worked. Lower-priced drugs in government-run stores have put 
pressure on private practitioners to follow suit. Private medical stores, who 
have started to lose business to sarkari stores, are cutting prices. Central 
Cooperative Bank MD Pradeep Sahay says the impact is spreading to other parts 
of Rajasthan too. Nine districts including Jaipur, Bhilwara, Jalore and Sirohi 
are now procuring drugs from the Chittorgarh cooperatives. In fact, in 
districts such as Jhalawar and Bundi, drugs must now be procured at 
�Chittorgarh rates�. �In some cases, just by removing the middleman there is 
sometimes as much as a 700 per cent reduction in prices,� says Ram Singh 
Sankhla, general manager with the bank.

Six months on, even individual patients from adjoining districts have now 
started rushing to Chittorgarh for medical supplies. At any given time, orders 
worth Rs 2-3 crore are waiting to be shipped to nearby districts by the 
cooperative. The medical store at the district hospital for women is in a 
perpetual state of flux because of the demand. This is where the government�s 
�godown� for generic drugs is. Letters exchanged with Pali district show an 
order worth over Rs 5.7 lakh. Another from Kota is a demand for Rs 1 crore 
worth of (generic) cetrizine. Each order is placed in cardboard boxes and 
loaded on to buses.

Meawhile, private-practice doctors like B.S. Kothari, whose clinic is in a row 
of houses next to the cooperative drugstores, look on. �I�ve come around to the 
view that one should try generic medicines�they are very good, particularly 
ones manufactured by established companies,� he says. Kothari says he now tends 
to prescribe more generic drugs.

According to experts, the fear of fake drugs, and of generic medicines not 
being effective enough, must go. For most generics have such low manufacturing 
costs that it�s rarely profitable to fake them. In Chittorgarh, a technical 
panel of doctors has pre-selected 22 drug companies (now being expanded to 57) 
who are welcome to participate in the tenders. �Surprise checks� on the 
cooperative�s medicines show they have �the same results as branded drugs�.

�Except, I believe, in the case of cancer drugs, you�ll get the same treatment 
and results with generics,� says Ranjit Roy Chaudhury, who runs the Delhi 
Society for Promotion of Rational Use of Drugs, an ngo that led a similar 
project in the late �90s in Delhi�s government hospitals. Chaudhury�s project 
did not encourage generics�it was too premature for that, he says. But when 
procurement was centralised and tendering cleaned up, he found 50 per cent of 
supplies had shifted, with little effort, to generics, from almost none earlier.

�Seriously, it�s difficult to imagine low medical costs in India without 
generic drugs,� says Kumar Bikram, a UNICEF official in Chittorgarh who has 
been working closely with the administration on social sector projects. Other 
states have tried making drug access easier on the pocket�such as Tamil 
Nadu�but on bigger budgets, while no concerted effort has been made to supply 
low-cost drugs countrywide. Sharma has indeed made a start in Rajasthan. What 
happens to this model when he is posted elsewhere is anybody�s guess.

http://www.outlookindia.com/article.aspx?250525 

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