Sources in the health department allege corruption on the part of the hospital administration and say that they are cheating the government
Procurement of medicines and surgical products by the Delhi government’s biggest hospital — Lok Nayak — is under the scanner as the administration has been found to be purchasing the products at exorbitantly higher rates.
A simple syringe (5ml) which is available for Rs 5 at a local market and for Rs 1.12 from the government’s central agency is being purchased at Rs 18 from a local chemist leading to a loss to exchequer.
A recent purchase made by the hospital’s procurement section on March 27 had a list of 18 products being purchased at a cost of Rs 1.82 lakhs from a local vendor. A copy of the rate contract is with DNA. Sources in the health department have alleged corruption on the part of hospital administration.
“The amount involved in the sale and purchase is much bigger than this contract. This is a single purchase. Other small hospitals are also purchasing the medicines from Lok Nayak on these rates,” said a senior doctor from the hospital.
The Delhi government last year had formed a Central Procurement Agency (CPA) to look after the sale and purchase of medicine and equipment in all state government hospitals. As per the process, if any product is not available with the CPA, the hospitals are allowed to make a local purchase.
“The hospital should always purchase the product from a vendor who is offering it at the lowest rate. This shows that the hospital is cheating the government by charging more,” a senior Delhi government official said.
A pack of sterile gloves has been purchased at Rs 49 per pair by Lok Nayak. The cost of the pack with the CPA was Rs 8.46 per pair and the local chemist sells it for Rs 5 to the general public. Explaining the process, senior officials in Delhi government said the hospital has to purchase the medicine from a chemist that offers the lowest rate.
“It is surprising that a pair of gloves which is available at a lower rate with the chemist is being purchased at such high rate. The hospital administration is making mockery of the entire system. Why would one waste money in getting the medicines at a higher rate when it is available at a lower price in other shops,” said a senior doctor from the hospital requesting anonymity.
“The rates are even lower than what is offered to the general public,” added the doctor.
Responding to the allegations, Dr JC Passey, medical director of the hospital said “Big hospitals like Lok Nayak are supposed to purchase the medicines at the lowest possible rate. We have a rate contract with a vendor for two years and we are bound to make the purchases even if he is selling us the medicines at the higher rate. The CPA rates are no doubt extremely low, but in emergencies we are left with no other option than purchasing it at higher rate.”
According to sources, most of the big hospitals in Delhi put in a demand of around one-two lakh gloves per month from CPA. The CPA had supplied around eight lakh gloves to Lok Nayak hospital in the month of October.
“The tender process in CPA ended after November and since then no new tender has been floated. The hospitals are making the purchases from their local chemists. But the aim is to make the purchase at the lowest possible rate,” said Dr Vijoy Kumar, additional director, CPA.
This is not a single case. Senior doctors in the hospital alleged that there are irregularities in the tender process of Anaesthesia department as well. A committee was suggested by the vigilance branch of the hospital but the committee has not submitted any report till now.
“The companies had supplied good to the hospital and after the discrepancies were pointed out, the companies were asked to take back the goods. But, the tender continued in the other hospitals and the Lok Nayak administration did not inform others about the problem,” a senior doctor at the hospital said.
A complaint has also been filed with the Central Vigilance Commission (CVC) regarding irregularities in the procurement of medicines.
...& ANALYSIS
- Corruption in the procurement process raises costs for patients who often can barely afford healthcare
- If the purchase are made through the common agency, the cost will be much less
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