Kerala Bars Branded Medicines Under Karunya Scheme to Curb Healthcare Costs
Thiruvananthapuram: The Kerala Health Department has issued revised guidelines to strictly regulate spending under the Karunya Healthcare Scheme, stating that the use of branded medicines is unnecessary for treatment and leads to avoidable expenditure.
Under the new directions, government hospitals covered by the Karunya scheme have been instructed to use only generic medicines supplied through official procurement channels, instead of costlier branded drugs. The move aims to ensure optimal utilisation of public funds and prevent wastage while delivering effective treatment to beneficiaries.
The guidelines also specify that medicines not included in the essential drugs list should not be purchased routinely. In exceptional situations where such medicines are required, doctors must provide a written justification. Approval for procuring non-listed medicines must be given by a committee comprising the hospital superintendent, store superintendent and pharmacist.
If a required medicine is unavailable in generic form, hospitals may procure alternatives using Karunya funds, provided the medicines are beneficial for all patients. Such purchases must be made only through approved channels such as the Development Committee, Neethi stores or Karunya Medical Stores.
Another major change restricts hospitals from referring patients to private laboratories for diagnostic tests. Instead, Karunya funds are to be utilised for strengthening in-house diagnostic facilities, including purchasing new equipment, improving infrastructure, repairing machinery and hiring technical experts where required.
The revised rules also clarify staffing norms. While Karunya funds cannot be used to directly hire cleaning staff, hospitals are permitted to recruit ward assistants, nursing assistants, nurses and technicians. Specialist doctors may also be engaged for services such as cath labs, neurosurgery, joint replacement and IVF procedures. However, expenditure on staff appointments must not exceed 40 per cent of the total Karunya fund.
According to a recent media report in the Mathrubhumi, the tightened norms are intended to ensure that funds under the Karunya Arogya Suraksha Padhathi (KASP) — which provides financial support for treatment of serious illnesses among economically weaker sections — are spent on essential medical care and long-term healthcare infrastructure rather than on high-cost or non-essential items.
The Health Department stated that the revised guidelines are aimed at improving financial discipline and sustainability of the scheme, while continuing to provide quality treatment to eligible patients across the state.
