Jan Aushadhi Scheme

• Jan Aushadhi, the government scheme to make quality drugs available at affordable prices, was relaunched with private participation.
• Non-governmental organizations, charitable institutions, reputed professional organizations, private hospitals and self- help groups will be eligible to open new Jan Aushadhi stores.

Highlights:

• It is a scheme which seeks to make available quality medicines at affordable prices for all, especially the poor and the disadvantaged.
• Under this, less priced quality unbranded generic medicines will be made available through Jan Aushadhi stores which inherently are less priced but are of same and equivalent quality, efficacy and safety as compared to branded generic medicines.
• Under this Scheme, the State Government has to provide space in Government Hospital premises for the running of the outlets (JAS). Government hospitals, NGOs, Charitable Organisations and public societies like Red Cross Society, Rogi Kalyan Samiti typically constituted for the purpose can be operating agencies for the JAS.
• The operating agency for JAS is nominated on the basis of the recommendations of the State government. Operational expenditure is met from trade margins admissible for the medicines.
• The State Government has to ensure prescription of unbranded generic medicines by the Government doctors.
• The Jan Aushadhi Programme is accordingly a self sustaining business model not dependent on government subsidies or assistance. It is run on the principle of “Not for Profits but with Minimal Profits”.
• BPPI (Bureau of Pharma Public Sector Undertakings of India) has been established under the Department of Pharmaceuticals, Govt. of India, with the support of all the CPSUs for co-coordinating procurement, supply and marketing of generic drugs through the Jan Aushadhi Stores.

Analysis:
Benefits:

• This will help in reducing cost of life saving drugs in India
• It will encourage doctors to prescribe generic drugs to patient
• This will increase in saving of household
• It will encourage participation of private institutions, NGO and other individuals to set up outlets
• This will increase the health coverage in India.

Challenges:

• To provide infrastructure of new outlets
• Maintenance of quality of product
• Private companies may not show much interest due to lack of profit margin
• Co-ordination between state and centre

Way ahead

• There is a need to improve access to healthcare in as much as cost of treatment would come down substantially. This would enable the Public Health System to increase the coverage.
• Promote & encourage private industry to sell their quality unbranded generic products through these retail outlets.
• Educate doctors that unbranded generic medicines provide a better option that branded products since quality of generic medicines can be equally efficacious and safe at much lower prices.
• Create consumer awareness by involving private, charitable bodies and NGOs by making them part of the campaign.
• Reduce promotional cost and profits for the benefit of patients.

By: Vishal