House panel raps health minister on CGHS anomalies

NEW DELHI: Armed with a CAG report pointing out “dubious“ procurement of medicines and their overpricing under the Central Government Health Scheme (CGHS), the Public Accounts Committee (PAC) of Parliament has asked the health ministry to formulate specific norms and take action against the guilty.

The PAC, which is evaluating CAG's observations, summoned health secretary B P Sharma and V K Subburaj, secretary in department of pharmaceuticals (DoP), earlier this week to discuss the anomalies pointed out in the report. The PAC was not satisfied with the responses, sources said.

PAC chief K V Thomas expressed concern that the ministry was “misleading“ the panel on the issue, a source said. Asking the ministry to take action, the panel asked for a reply within 10 days as it plans to place a report in Parliament. Apart from the procurement, the supply chain mechanism and overpricing of medicines under CGHS, the PAC also pulled up officials on availability and quality of drugs.

Under CGHS, government employees and pensioners can avail of cash less diagnostics and treatment at a subsidized rate.

The scheme, which runs across 25 cities, operates through 273 allopathic dispensaries. The government has also tied up with around 562 private hospitals for the scheme.

A 2010 World Bank report estimated the number of CGHS beneficiaries at three million.

The government has informed the PAC that the pharmaceutical companies have been instructed about the guidelines and action will be taken if norms are not followed.