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CAG report slams Delhi Health department over Medical Equipments

CAG report slams Delhi Health department over Medical Equipments

New Delhi: The CAG report for the year 2014-15 tabled in the Delhi assembly on Monday criticised the Delhi health department and said that there was need for a comprehensive procurement policy for medical equipment.

A performance audit on ‘Procurement, Maintenance and Use of Medical Equipment in Government Hospitals’was conducted from May to September 2015 . Audit test checked records of 11 out of 39 government hospitals, selected on the basis of maximum expenditure incurred under plan head ‘Machinery and Equipment’ during the last five years.

The 11 hospitals included Baba Saheb Ambedkar Hospital, Deen dayal Upadhyay Hosptial, GB Pant Hospital, Guru Nanak Eye Hospital, Guru Gobind Singh Government Hospital, GTB Hospital, lok Nayak Hosptial, Sanjay Gandhi Memorial hospital, Lal Bahadur Shastri Hosptial and Rao Tula Ram hospital.These hospitals catering to health needs of nearly 1.68 crore people held various factors such as delay in tender evaluation, bill submission and finalisation responsible for under utilised funds.

The report highlights anomalies such as paying millions of rupees as consultation fees to a private agency even as it failed the task, of “condemned” medical equipment and parts worth over Rs 22.32 crore and ‘un-adjusted’ advance of Rs 73.62 crore given to the suppliers.

“There was a delay ranging up to 2 years in procurement and delivery of medical equipment though this activity was outsourced to an agency with the specific objective of eliminating such delays. An amount of Rs 60.65 lakh was paid to the agency as consultation fee,” said the performance audit report of the Comptroller and Auditor General of India (CAG) for Department of Health and Family Welfare.

“Some 2,930 items of equipment worth Rs 24.32 crore and 883 equipment where cost was not available, were declared condemned during 2010-15 by various departments of the selected hospitals of the selected hospitals, but had not been disposed off,” the report added.

Prolonged delay in disposal of condemned equipment results in further deterioration in their condition and realisable value, it said.

The audit also observed that none of the selected hospitals had any Bio-Medical Engineers Technicians for ensuring proper maintenance and up-keep of medical equipment.

Salient features of the report are as follows:-

  • A comprehensive plan for procurement of medical equipment had not been prepared either centrally in the department or at the level of individual hospitals.
  • There was delay ranging upto 2 years in procurement and delivery of medical equipment though this activity was outsourced to an agency with the specific objective of eliminating such delays. An amount of Rs 60.65 lakh was paid to the agency as consultancy fee.
  • Hospitals failed to impose penalty of Rs 95.84 lakh on defaulting suppliers for delayed supply of essential medical equipment.
  • Advances of  Rs 73.62 crore given to suppliers remained unadjusted from the year 2005 till date in hospitals test-checked.
  • Hospitals procured items and consumables of Rs 3.16 crore in excess of their actual requirement, which were lying unused in stock for prolonged periods.
  • Sixty six equipment valuing  Rs 18.22 crore received during 2009-10 to 2014-15 were installed after delays ranging from 1 month to over two years.
  • Twenty one equipment costing Rs 83.17 lakh remained unutilized due to non-availability of accessories, regents and consumables for periods ranging between 15 days to over three years.
  • Hospitals incurred an expenditure of Rs 94.78 lakh on repair of equipment that were under warranty. The hospitals neither invoked the warranty nor initiated action against the firms.
  • 2,930 items of equipment worth Rs 24.32 crore, and 883 equipment where cost was not available, were declared condemned during 2010-15 by various departments of the selected hospitals, but had not been disposed off.
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