PGI Overhauls Procurement After Ayushman Scam, Bans Third-Party Vendors
PGI Bans Third-Party Vendors Post-Ayushman Scam

PGI Chandigarh Implements Major Reforms After Ayushman Bharat Scam

In response to the high-profile Ayushman Bharat scam, which involved the siphoning of funds through forged bills and deceased patients' records, the Postgraduate Institute of Medical Education and Research (PGI) in Chandigarh has undertaken a comprehensive overhaul of its procurement processes. This decisive action aims to restore integrity and prevent future financial irregularities within the institution.

Zero Third-Party Policy to Eliminate Middlemen

The institute has introduced a groundbreaking "zero third-party" policy, a strategic move designed to completely remove private intermediaries from the procurement chain for implants and medical consumables. Under this new framework, all transactions for surgeries and specialized treatments under cashless schemes will now be handled directly between the hospital and authorized manufacturers or internal pharmacies. This direct approach ensures that no external vendors can interact with medical staff, thereby closing loopholes that previously facilitated fraud.

Strict Prohibitions on Vendor Interactions

To further curb the influence of external agents, PGI's administration has imposed strict prohibitions. Vendors are now barred from dealing directly with doctors, hospital staff, or patients' attendants. Previously, these vendors often acted as facilitators for obtaining implants, leading to issues such as price manipulation and billing fraud. All procurement requirements will be routed through a centralized internal system, enhancing transparency and accountability across the board.

Wide Pickt banner — collaborative shopping lists app for Telegram, phone mockup with grocery list

Transition to a Secure Digital Indenting System

The Ayushman scam, which involved the transfer of approximately Rs 88 lakh to pharmaceutical vendors without valid prescriptions, has prompted PGI to transition to a secure online indenting system. This digital solution is fully integrated with the Hospital Information System, replacing manual records with a real-time tracking mechanism. Every medicine and implant issued under the schemes is now digitally linked to a specific patient's ID and the treating consultant's authorisation, ensuring traceability and reducing the risk of fraudulent activities.

Enhanced Patient Safeguards Against Resale Rackets

To protect patients from the "medicine-resale" racket, PGI is increasing its staffing levels to ensure the direct delivery of medications and implants to the patient's bedside. By eliminating the need for attendants to visit external pharmacies with manual slips, the hospital aims to shut down the use of counterfeit stamps and forged documents that were central to the recent scam. This measure not only enhances patient safety but also streamlines the treatment process.

Background on Ayushman Bharat Scheme

The Ayushman Bharat scheme is a government initiative designed to provide eligible families with free medical treatment and medications up to Rs 5 lakh annually. For medicines exceeding Rs 2,000, patients require a doctor's prescription documented in an indent book, which must be verified with stamps from multiple authorities, including the doctor, nursing officer, Ayushman counter, and dispensary. PGI's reforms are aligned with strengthening these protocols to prevent misuse and ensure the scheme's benefits reach intended beneficiaries effectively.

Pickt after-article banner — collaborative shopping lists app with family illustration