Delhi govt to procure medicines directly from manufacturers

While it has no plans to enhance its allocations for health services, the state government has contended that the existing resources are sufficient and need to be utilized efficiently to transform the healthcare of the state by March 2017


NEW DELHI: While speaking at the India Hospital Summit-2016 under aegis of PHD Chamber of Commerce and Industry, Mr Satyendar Jain, Minister of Health and Family Welfare, Government of Delhi, disclosed that the state government would create Central Warehouse shortly for storage of medicines that would preserve medicine for three months, the distribution of which would be outsourced to all government hospitals in Delhi for their timely delivery.

He categorically stated that there are no plans to enhance its allocations for health services, contending that the existing resources are enough and sufficient and need to be utilized efficiently within which it will transform the healthcare of Delhi by March 2017 by adding another 10,000 beds on to its existing hospital infrastructure with free insurance services to masses of Delhi.

Earlier in his welcome remarks, Vice President, PHD Chamber, Mr Anil Khaitan demanded that the Delhi government should take ideas for improving its health services with states such as Rajasthan, Andhra Pradesh, Tamil Nadu and even Maharashtra where lot of good work has taken place in the response of which Mr Jain said that Delhi would put up health and medical facilities for its masses on par with prevailing standards of economies of scale.

According to Mr Jain, “Delhi Health Corporation would also be set up to make sure that the health facilities and medical services are properly monitored including the procurement of medicines directly from manufacturers with an advance payment of 80% of their total cost.  Remaining 20% would be reimbursed to the source of medical and equipment supplies after procuring their bills”.

“Budgetry allocations for improved health and medical services are more than sufficient in my view and I won’t seek higher allocations for them.  What I would insist on is on cost cutting and much higher capacity utilization of the existing health facilities and hospitals with government as through a right approach for higher capacity utilization, it has been proved in the Delhi government during last one year that for a bed of 200 hospitals if it is converted into 600 beds, the cost was reduced from 1 crore a bad to 25 lakhs a bed.  Where is the requirement for increased health budget in such a scenario?”, asked the Minister.