State orders probe into procurement of medicines by BMC-run hospitals
The state government has ordered an inquiry into the procurement of medicines and equipment by hospitals run by the Brihanmumbai Municipal Corporation (BMC) following reports of an artificial shortage. The government will also release a white paper on the services provided by BMC hospitals.
The state government on Friday announced a high-level inquiry into the procurement of medicines and equipment by the hospitals run by the Brihanmumbai Municipal Corporation (BMC).

HT was the first to highlight the artificial shortage in supply of medicines by BMC’s central purchase department, forcing patients to buy medicines from outside.
Making the announcement in the assembly, industries minister Uday Samant said, “BMC hospitals ask patients to bring medicines from outside. They also ask them to get their medical tests done in private hospitals and laboratories. Considering this, medicines that are procured by the hospitals and the facilities they are providing require a detailed probe.”
Samant also announced that a white paper on the services provided by five BMC hospitals, including King Edward Memorial Hospital, Lokmanya Tilak Municipal General Hospital, and BYL Nair Hospital, will be released.
“For those coming from rural areas, BMC-run hospitals are nothing less than seven-star hospitals and hence, they need to know what sort of facilities they are providing,” the minister said.
Congress legislator Amin Patel and BJP MLA Ashish Shelar raised the issue, saying though BMC spends ₹4,000 crore a year on healthcare, the basic services offered by its hospitals leave much to be desired.
Samant also assured the house that they will consider setting up a facility to house relatives of those patients coming from outside the city.
About the hospitals run by charitable trusts, he said they are supposed to reserve a certain number of beds for patients who are unable to afford basic healthcare. “A drive will be undertaken to see if they are violating this rule and action will be taken accordingly.”
The hospitals run by charitable organisations are supposed to reserve 20% beds for patients who cannot afford basic healthcare, and 10% of those beds are free of charge for patients from below the poverty line.
There are around 1,574 hospitals in Mumbai. Of them 1,517 are private while 57 are run by the government and BMC.
What HT found
On May 10, HT reported on the artificial shortage of medicines at BMC-run hospitals which in turn forced patients to buy medicines, gloves, saline, medical dressing material etc. from outside. While contractors claimed the corporation’s central purchase department (CPD) had not floated tenders for bulk purchase for three years, BMC officials said they opted for purchasing medicines locally to break the contractors’ monopoly.
However, when HT visited some of the hospitals, it found that relatives of patients were spending heavily on buying medicines. A CAG report titled ‘Public Health Infrastructure of Health Services in Maharashtra’ from 2019-20 to 2021-22 also stated that there was a delay in finalisation of the rate contract for different schedules of medicines for a period ranging from four months to 35 months.
After HT’s reports, BMC’s deputy municipal commissioner (public health), in a meeting on May 10, directed health officials, including hospital deans, to ensure that there was no shortfall of medicines and medical supplies at the facilities. Dr Sudhakar Shinde, the newly appointed additional municipal commissioner, is also holding meetings with the CPD to streamline the purchase process.
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