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Rs 100 crore Doctor Referral Nexus Exposed-IT Raids at top Medical Centres

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Rs 100 crore Doctor Referral Nexus Exposed-IT Raids at top Medical Centres

Among the centres raided include those belonging to a Padma Shri Awardee Doctor, state certain medical reports 

BENGALURU: Income-Tax officials have unearthed a major multi-layered nexus between medical centres and doctors and an undisclosed income of Rs 100 crore after searches at a few IVF clinics and diagnostic centres here, the department said on Saturday.

It claimed doctors were being paid “for referring medical tests”.

I-T sleuths, the department said, have seized about Rs 1.4 crore in cash and about 3.5 kg of jewellery and bullion during its three-day action against two in-vitro fertilisation (IVF) centres and five diagnostic centres.

They also seized foreign currency and detected foreign bank accounts with “deposits running into crores of rupees”.

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While the labs searches have declared an undisclosed income of over Rs 100 crore, the amount of referral fee in case of a single lab is more than Rs 200 crore, it said in a statement.

The searches at the diagnostic centres, a senior official said, uncovered various methods by which doctors were being paid for referring medical tests.

“The commission varied from lab to lab but the median range of normal cut/commission for doctors is 35 per cent in case of MRI tests and 20 per cent in case of CT scan and other lab tests. These payments are found to be disguised as marketing expenses,” the statement read.

The department said referral fee to doctors was paid in at least four ways, including fortnightly cash payment and advance cash payment.

In some cases, referral fee paid to doctors by cheque was shown in books as “professional fee”.

As part of a deal, doctors were employed as in-house consultants. “However, neither did they come to diagnostic centres nor saw patients or wrote reports. This payment is a disguised referral fee,” the statement read.

The department claimed referral fee was paid to doctors by cheques under “revenue sharing agreements”.

“Some of the labs employ commission agents whose job is to distribute money to doctors in envelopes.

“These agents insert a small chit in envelopes while giving them to doctors which contains the details — names of patients referred by the doctor, doctor’s name, tests done, amounts billed, cut/commission amount to be given to the doctor and the date on which the test was done,” it said.
A recent report in Indian Express states that the residence and office of Dr Kamini A Rao, renowned gynaecologist, Padma Shri awardee and founder and medical director of Milann IVF Centre, were among the several locations raided by Income Tax officials on Wednesday.  Among those raided include Clumax diagnostics and a few pharma distributors.

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Source: with inputs
14 comment(s) on Rs 100 crore Doctor Referral Nexus Exposed-IT Raids at top Medical Centres

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  1. Matter of great shame and lack of minimal ethical values reason for the public angry against the doctors.Honest doctors are also targeted and think the public thinks all doctors same kind of money, which is not true. Lot of malpractice , corruption in u g and pg examination is rampant , all types of manipulations happens in pvt medical colleges and university level . It is taking medical profession no where. It is the same pple give openion in public and media. It is shame. I strongly condemn and advise medical professional to take corrective measures , otherwise U are doomed already public ,politicians and beurocrates are all against you. I hope there will follow up action , there was I t raids on pvt medical college campuses later no news. If no corrective measures are not taken against medical malpractices and medical education we doomed and we wil leave worst scenario for our future generations .

  2. We are coming out of the savage slavish life of oldendependant nation, Let us fightfor a better India,Try to persuade your brothren in the profession not to be a coward and insist on professionalism.This is our contribution to the country

  3. user
    JEYACHANDRAN KARUNAKARAN December 4, 2017, 4:10 pm

    Most of us know what is going on in our profession as the \”service\’ gradually turned in to an \’industry\” – \”A profession\” in to a\” trade \”—I would like to paraphrase Martin luther king jr\’s quote——
    “History will have to record that the greatest tragedy of this period of social ( professional) transition was not the strident clamor of the bad people, but the appalling silence of the good people.”–Many of us septuagenarians feel so ashamed for our long tolerance and silence as we now look at the dismal state of shame and mistrust we have brought on ourselves! May God forgive us for not a raising strong voice —-

  4. This is a rampant practice of giving commission to Doctors who refer patients to the Labs. There are Labs where there is no M.D pathologist and even then the Labs are fuctioning and this is because of cut practice. The doctors refer patients who actually do not even need Lab test but the doctors refer them for cut. In mumbai also there are Labs where cut practice is rampant . I in person know one Pathologist who is not M D and his son is P.hd and they sign the reports on the pretex that the son is a Docotr In fact that P.hd degree is conforted on a person who writes a thesis but actuaslly he is NOT a doctor but today the general public is not aware of this and they call him doctor because Dr. prefix is mentioned in front of his name. These kind of malpracticies are to be stop[ped by the IMA . Lot has been written on this and even RTI\’s have revealed the facts that these so called pathologist are not registered with IMA but till today No action has been initiated. There are many Doctors who are fighting against this illegal Labs and cut practgice menace but it only remains to be seen when stringent laws are formulated and action is initiated against Cut practice

  5. Sorry it is not 100 crore it varies between 500 to 1000 crore all hospitals are paying commission to RMP, doctors for for referring the patients, lab investigation radiological investigationall are involved in this thi

  6. Thta is true… If an honest doctor refuses to accept even a \’Pen\’ as a Gift , he will be branded as an idiot !!!
    Much like Modiji being blamed for all the ills of this nation and people who lost money in demonetization(even though it was successful only partially because of some unscrupulous bank staff who helped people with black money escape with Brand new Notes !!!)..Another wave of Demonetization/radical \”Benami Asset\” seizes and making cash transaction above a fixed(say 50000/-, amount illegal) things will not change ..Will eeh General population can accept that and cooperate ..I am doubtful !!!

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