KATHMANDU: The government for the first time has introduced 'Healthcare Technologies and Medical Supplies Directive 2017' for streamlining the management of purchase and distribution of medical technologies and equipment.

The Cabinet meeting held on Monday endorsed the directive presented by the Ministry of Health paving the way for capping the widespread irregularities flourishing under random and unchecked pricing system for healthcare technologies and equipment.

With the endorsement of the directive, Health Minister Gagan Thapa said,  the Maximum Retail Price (MRP) of the health technologies and equipment will be fixed.

"The health service will be affordable and quality-based with the enforcement of the directive as purchase of quality healthcare materials and equipment will be made affordable," Minister Thapa said, adding that his will prevent the misuse of State coffers.

The Ministry of Health prepared the directive as per the suggestion and advice received from medicinal consultants and advisory committee.

From now on, companies setting up drug manufacturing industries and overseeing the supply of medical equipment and technologies will have to seek a recommendation from the Department of Drug Administration (DDA) and be registered with the government.

The DDA will also be tasked with the job of monitoring the compliance with the new directive.

The MoH will subject the concerned companies and individuals to legal action under Drugs Act and Procurement Act including other regulations for noncompliance with the directive.