Chandigarh: One of the country’s leading medical institutions, PGI Chandigarh, has carried out a major overhaul of its procurement system following the recent Ayushman scheme scam. The institute has implemented a ‘zero third-party’ policy, eliminating the role of middlemen in the purchase of medical equipment, implants, and medicines.
The move comes after a case surfaced in which nearly ₹88 lakh was transferred to pharmaceutical vendors through forged bills and records of deceased patients under the Ayushman Bharat scheme. The revelations raised serious concerns over the hospital’s existing processes, prompting swift corrective action by the administration.
Complete ban on intermediaries
Under the new system, external vendors will no longer be allowed to directly interact with doctors, hospital staff, or patients’ attendants. Earlier, such vendors often acted as intermediaries in the supply of implants and medicines, leading to price manipulation and billing fraud.
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The hospital administration believes that removing intermediaries will enhance transparency and help control treatment costs. All procurement and supply processes will now be routed strictly through the institute’s internal system.
Digital tracking for every transaction
The institute is transitioning to a secure online indenting system integrated with its hospital information system. Under this mechanism, every medicine and implant will be linked to a patient’s unique ID along with authorisation from the treating doctor.
Previously, manual records and paper-based processes made it easier to misuse fake stamps, forged documents, and incorrect entries to siphon off funds. The new digital system will enable real-time tracking, ensuring that any irregularity is detected immediately.
Crackdown on medicine resale racket
Investigations also revealed instances where medicines issued from the hospital were being resold outside. To eliminate this “medicine-resale” racket, the institute is now implementing a system of direct delivery of medicines and implants to the patient’s bedside.
With this change, attendants will no longer need to visit external pharmacies using manual slips, reducing the chances of misuse of forged prescriptions and counterfeit documentation. Additional staff is also being deployed to ensure smooth implementation of the new distribution system.
Rules under Ayushman scheme
Under the Ayushman Bharat scheme, eligible families are entitled to free treatment up to ₹5 lakh annually. However, medicines costing above ₹2,000 require a doctor’s prescription, which must be verified at multiple levels, including doctors, nursing staff, scheme counters, and dispensaries.
These multi-layered processes were exploited in the scam. With the new system, every step will now be digitally recorded, reducing human intervention and ensuring accountability.
Signal of tighter controls in healthcare
Experts believe that the steps taken by PGI Chandigarh could serve as a model for government hospitals across the country. With rising cases of financial irregularities in the healthcare sector, the need for digital monitoring and transparent systems has become increasingly critical.
The reforms are expected not only to curb corruption but also to restore patient trust in institutional healthcare delivery.
