CGHS Diretorate pulled up by PAC

CGHS Directorate pulled up by PAC for not revising drug procurement policy
MPs raise concerns over supply of outdated drugs, delays in claim settlement
Sobhana K. Nair
NEW DELHI

The Parliament's Public Accounts Committee (PAC), headed by Congress leader K.C. Venugopal, pulled up the Directorate of the Central Government Health Scheme (CGHS) for ignoring repeated recommendations by the panel to take various steps to improve its services, including periodically revising its drug procurement policy.

Sources said Union Health Secretary Punya Salila Srivastava told the panel that the government was in the process of revising the rate list for various treatments, adjusting to the current rate of inflation. Several hospitals have pulled out of the scheme due to the low rates sanctioned by the CGHS for various medical procedures.

The PAC was reviewing the 2022 performance audit report of the Comptroller and Auditor General on the subject ‘Procurement and Supply of Drugs in CGHS’. The report had pointed out that the Ministry had not ensured the drug formulary was periodically revised, and as a result, the CGHS could not buy new drugs.

Tenders for rate contracts for drugs listed in the formulary were not processed in an efficient and timely manner by the Medical Stores Organisation. In absence of rates for drugs, the CGHS could not procure drugs listed in the formulary. The Comptroller and Auditor General (CAG) had recommended the drug formulary be revised on a half-yearly basis.

Mr. Venugopal asked why the Ministry had ignored repeated directions from the panel on the issue. At Tuesday's meeting, members raised concerns over the supply of outdated drugs to beneficiaries, delays in the settlement of claims, and the absence of coverage for the latest medical procedures.

The Health Secretary, according to sources, said that the government was in the process of upgrading the policies governing medical procedures, widening them in both scope and scale.