RTI ACTIVISTS EXPOSE '540 CRORE HEALTH SCAM' IN AP

In Andhra Pradesh, a massive health scam to the tune of Rs 540 crore by way of excess billing and violation of the terms of agreement under various employee health care schemes by city-based private hospitals has been unearthed by a group of civil society activists, thanks to the Right to Information Act. 
    
Right To Health (RTH), an initiative by civil society activists, through a series of RTI applications, said that between 2007 and 2010, Central Government Health Scheme (CGHS) was duped of Rs 180 crore, AP government was duped of Rs 240 crore and other institutions including ESI, Aarogyabadratha, Transco, Genco, CCMB, IICT and NGRI were cheated to the tune of Rs 120 crore by private hospitals. 

    
Corroborating their claims with documents, the members said that over 300 hospitals were party to the scam, involving state government beneficiaries and the 14 major hospitals in Hyderabad caught by the Central Vigilance Commission for defrauding CGHS in 2009. 
    
“In 2007, rates fixed for various treatments and procedures by the CGHS were reduced by about 40% than the 2002 rates after a rationalisation exercise. However, a nonexisting organisation called AP Nursing Homes Association filed a writ petition in the high court and got a stay on the 2007 tariff memorandum as ministry of health did not file any counter,” said Shankar Rajashekharan, founder and trustee, RTH. “Private hospitals claimed the higher 2002 tariff between 2007 and 2010 and looted public money,” he added. 
    
However, despite the high court dismissing its earlier stay, ministry of health and family welfare and AP government have not initiated any recovery of excess amount paid to the hospitals. “The disinterest in recovery shows a major collusion between certain officials of central governmentrun CGHS, state government and the management of private hospitals. The central and state governments continue to pay these hospitals as if nothing has happened,” said Dr Dayaker Reddy, founder and trustee, RTH. 
    
The members urged the governments to take immediate steps for recovery of excess amount paid to the private hospitals and initiate appropriate criminal proceedings.