Punjab: Private lab chain found overcharging, govt initiates recovery process

PHSC had engaged Krsnaa Diagnostics Limited to provide radio and lab diagnostic services at all major secondary-level healthcare facilities — the district and sub-divisional hospitals — across the state under public-private partnership

The Punjab Health Systems Corporation (PHSC) has found a private lab chain— Krsnaa Diagnostics Limited — guilty of overcharging patients .

In April, the corporation had issued a show-cause notice to the lab chain following several complaints from patients, alleging overcharging beyond the rates fixed by the Punjab government. (Getty Images/iStockphoto)

PHSC had engaged Krsnaa Diagnostics Limited (KDL) to provide radio and lab diagnostic services at all major secondary-level healthcare facilities — the district and sub-divisional hospitals — across the state under public-private partnership.

In April, the corporation had issued a show-cause notice to the lab chain following several complaints from patients, alleging overcharging beyond the rates fixed by the government.

Now, shooting off a letter to the lab chain manager (operations), PHSC has directed them to stop the overcharging immediately.

“Upon review of your reply, it has come to our attention that you have been imposing additional charges for extra films (X-ray film) without prior authorisation from the appropriate authorities. Hence, you are hereby instructed to cease this practice immediately,” reads the letter.

Additionally, PHSC has also directed KDL to furnish comprehensive data of patients, who were overcharged for extra films.

The lab chain has been given seven days to furnish the information to prepare a proper mechanism to recover and allocate the extra charges.

Confirming the development, Varinder Kumar Sharma, managing director, PHSC, said, “The rate for extra films was not fixed. However, patients were being charged for them.”

A government doctor in Patiala, pleading anonymity, said he had informed the officer concerned regarding the overcharging by the private lab chain last year. However, no action was taken.