Regulatory changes led to major drop in billing of CT and MRI scans under PPP, says Minister

Health Minister Dinesh Gundu Rao on Friday said the introduction of a regulatory mechanism in government hospitals had led to a significant reduction in the number of CT and MRI scans being billed under public-private-partnership (PPP), resulting in substantial savings to the exchequer.

His remarks come in the wake of a private firm — Krsnaa Diagnostics Ltd.  — halting CT services in 13 district hospitals and MRI services in five district hospitals that are under a PPP model since 2017. Citing non-payment of dues, the company stopped services from February 18. The disruption triggered protests in some districts and drew criticism from the Opposition.

Addressing a press conference on Friday, Mr. Rao said that until recently, there was no structured monitoring system governing diagnostic scans carried out under the PPP arrangement with the company.

“Earlier, there was no proper mechanism. Whatever the company claimed was largely accepted. Once we brought in a system and clear rules, the volume of scans came down considerably,” he said.

The Minister said that in the last one-and-a-half years alone, the government had saved over ₹200 crore on MRI and CT scan expenditure after streamlining approvals and shifting to a regulated model. “When we introduced checks and verification, the number of scans was reduced. That itself shows there was overuse earlier,” he said.

The dispute over pending dues dates back to 2019. The company had sought around ₹143 crore and demanded a 5% annual escalation every year from 2019 onwards. “We have clearly told them that we cannot release payments without proper verification. We have found that multiple scans were billed when one scan was required. We will pay what is legitimately due, but not amounts that are not justified,” he said, adding that confirmation of earlier scans had been made mandatory before clearing bills.

Alternative arrangement

Mr. Rao said the disruption had affected services in 13 hospitals, but alternative arrangements had been made in most of them and would be completed in the remaining hospitals shortly. Tenders have been floated for MRI machines in seven government hospitals and for three CT scan units, and the department would soon procure and install the equipment.

Responding to criticism from the Opposition, the Minister said the issue was being projected as a financial crisis. “Some are saying the department is paralysed and that the government has no funds. That is not true. Even if there is a delay in receiving National Health Mission funds from the Centre, we are continuing to fund all schemes,” he said.

“Our responsibility is to ensure that people do not suffer. There is no paralysis in the department. The department is functioning,” he added.

Appointment letters

Mr. Rao announced that around 1,200 appointment letters would be distributed on Saturday, including 970 paramedical staff. A one-year internship programme has been approved for 223 D-Pharma students in government hospitals, and 77 drug inspectors have been appointed, he said.