ESIC's decision to open medical colleges ill-planned: CAG

The decision by the Employees State Insurance Corporation (ESIC) to open medical colleges was ill-planned and no due diligence was done, the Comptroller and Audit General of India (CAG) revealed on Friday.

The organisation also did not have any concept paper or project report to assess the viability of opening medical colleges or alternatives to cope up with the shortage of medical personnel in the ESIC hospitals, the CAG said.

The revelation, which is part of a special report of CAG on ESIC, further said the number of sites selected for opening of medical colleges was disproportionate to the requirement of medical personnel.

"Due diligence, if any, carried out to ascertain the number of colleges required to be opened to fulfil the further requirement of doctors and other paramedical staff was not available," said the report presented in parliament.

"Due to no-uniformity in clauses in agreement with architectural consultants, ESIC was liable to pay extra consultancy fees Rs.24.68 crore. There were time and cost over-runs in majority of the medical education projects," said the report.

"Only 14 percent of the students passed out from post graduate institutes (PGI) joined the ESIC hospitals which indicated that the strategy of opening medical colleges for filing the vacant posts failed.

"The decision to exit from this endeavour was only an exercise to limit the sunk losses and further liabilities."