Pune Civic Hospitals continue to face financial irregularities amid manual billing systems

Reports indicate that several financial discrepancies have surfaced at billing counters in recent years. Despite repeated assurances from the civic body about introducing digital systems, the transition has moved slowly.

The continued use of offline billing methods has reportedly created loopholes that some staff members have allegedly used to alter records and divert public money. The delay in digitising operations has therefore drawn attention to vulnerabilities in the current system at municipal healthcare facilities. Officials suggested that relying on an online billing system and regular monitoring might be a solution to the problem, reports The Times of India.

Medical Dialogues had earlier reported that four staff members at a Pimpri-Chinchwad Municipal Corporation-run hospital were accused of manipulating billing records and siphoning off lakhs of rupees. Preliminary findings indicate that one permanent employee and three contractual staff were involved, siphoning off around Rs 9.25 lakh over a period of time. Among the four staff, there were three contractual employees and one permanent billing clerk at Prabhakar Malharrao Kute Hospital in Akurdi. Following the discovery, PCMC authorities conducted inspections at other civic hospitals and found a similar pattern of suspected financial misconduct at a hospital in Bhosari, where two employees were allegedly involved in misappropriating nearly Rs 10 lakh.

Investigators found that staff manipulated billing records by collecting the full payment from patients but reporting a lower amount in official documents. For instance, while a patient might be charged Rs. 100, the copy submitted to the civic authorities would show only Rs. 25, allowing the staff to keep the remaining Rs. 75, reports     The Daily.

Dr Laxman Gophane, chief medical health officer of PCMC, pointed out that an investigation is underway. "We have written to the police seeking an FIR against four individuals in one case. A second FIR against two more individuals in a separate incident will be proposed soon," he said. Dr Gophane also added that senior officials are also being investigated to check accountability. However, an official FIR is yet to be registered in either matter.

Many officials pointed out that this has been a recurring problem. In December 2024, staff at Jijamata Hospital were found to be involved in a fraud where a significant portion of patient payments was not deposited in official accounts. Similarly, in November 2023, a contractual employee at Yashwantrao Chavan Memorial Hospital used fabricated receipts to misappropriate funds by underreporting collections. A senior health department official attributed the continued dependence on third-party staff to a shortage of permanent personnel. "Clerical work requires a large volume of staff to work round-the-clock, and PCMC currently lacks that internal strength," he explained. 

Officials said that introducing a fully digital billing system with real-time monitoring is the only sustainable solution. At present, most of the nine hospitals run by the Pimpri Chinchwad Municipal Corporation still rely on offline systems, though the city’s largest facility, Yashwantrao Chavan Memorial Hospital, has shifted almost all its billing counters to an online system in the past three months.

“We are in the process of making online billing mandatory across all hospitals within the next 45 days,” Dr Gophane told The Daily. Sayali Kiran Nadhe, president of the Congress city unit's women's wings, also pointed out that handwritten bills become a medium of fraud. “Shifting to a fully online system would significantly reduce the scope for manipulation,” Nadhe said. She further demanded that to uphold an unbiased investigation, these cases should be dealt with by the police rather than the internal administration. “In previous instances, the civic body allowed those involved to continue working after they returned the misappropriated amount. This cycle must stop. Those involved must be suspended and face strict legal action to deter others,” she added.