Par panel finds deficiencies in drugs procurement by CGHS

A parliamentary panel has found several deficiencies in procurement of allopathic drugs for Central Government Health Scheme (CGHS) causing "significant" financial burden and has asked the Health Ministry to plug loopholes and take corrective measures and strengthen its internal control system.
The Public Accounts Committee (PAC) for the Union Health Ministry on "procurement of allopathic drugs in CGHS" in its 16 recommendations has also asked the Ministry to furnish particulars of those CGHS Wellness centres which are performing well and those that are lagging behind.
"The committee find that there have been several deficiencies in the management of pharmaceutical procurement procedure for procurement of allopathic drugs for CGHS.

"The committee finds that 71 per cent of drugs procured consisted of drugs outside the formulary (of CGHS) despite the fact that prices of drugs in the formulary are comparatively lower," the PAC chaired by former Union Minister K V Thomas said in its report said.
Noting that CGHS resorted to procurement of higher priced branded drugs despite the availability of low cost brands, the PAC said that this has cause "significant additional" financial burden to the exchequer while high incidence of local purchase of drugs and irregularities has been reported in such procurements.
The report said that prescription patterns of the doctors is also leading to high incidence of local purchase of drugs. It said despite having a code of ethics in Indian Medical Council Rules introduced in 2009 forbidding doctors from accepting any gift, hospitality, trips to foreign and domestic destinations from health care industry, there is no let up to this "evil" practice.

"The committee urges the Health Ministry to plug the loopholes and take timely corrective action...And recommend that the Ministry should strengthen their internal control system to check irregularities in procurement process and ensure procurement of good quality medicines at affordable prices in accordance with the cannons of financial propriety," it said.