Health Minister okays sop, his officials worried

Two years ago, the Union Health Ministry held back payments of Rs 28 crore to four super speciality hospitals on grounds of charging inflate...

Two years ago, the Union Health Ministry held back payments of Rs 28 crore to four super speciality hospitals on grounds of charging inflated rates from CGHS patients.

The ministry stopped referrals of patients covered under the Central Government Health Scheme to Hyderabad-based Apollo, CDR, Yashoda and Mediciti hospitals after several complaints of overcharging. The case was subsequently handed over to the CBI.

However, in January this year, Health Minister Anbumani Ramadoss approved the release of the amount against bank guarantees even though his officials resisted the move. Officials at the ministry’s vigilance and finance department said the amount should be released only after the CBI fixes the excess money charged by these hospitals.

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Ramadoss’ sop comes after Apollo urged the minister in October to release the money citing financial problems. It suggested that the ministry release Rs 8.63 crore payment it had blocked by taking a guarantee for Rs 6.4 crore (75 per cent of the held money).

This proposal was strongly opposed by the finance and vigilance departments of the ministry.

But Ramadoss, on January 25, approved the release. Now, his officials are working over time to frame stringent norms to avoid a ‘financial risk’.

Once such plan is to hold payments of the three hospitals who have not furnished a request. The other is that only 70 per cent of the money be released with the rider that any under-recovery could be held back from Apollo’s other branches.

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The Health Secretary has also asked CGHS director to get a ‘‘good format to obtain the bank guarantee so that there would be no problems in case of encashment’’.