In a decisive move to enhance transparency and curb inflated prices in medical procurement, the Delhi government has issued a directive prohibiting hospitals in the national capital from making direct purchases of medical devices, consumables, equipment, and machinery. Effective immediately, all such procurements must be conducted exclusively through the government's Central Procurement Agency (CPA) via the e-procurement system.

The Health Ministry's order, dated June 4, 2025, explicitly states that "direct purchases or cart-based procurement on the GeM (Government-eMarketplace) portal by hospitals are strictly prohibited." The CPA is now solely responsible for handling all demand and bidding processes, ensuring a standardized and transparent procurement mechanism.

This policy shift comes in response to findings that certain hospitals and institutions were engaging in direct purchases or utilizing GeM's cart feature, leading to inflated prices, significant price discrepancies, and raising serious concerns of audit non-compliance. The government aims to eliminate such practices by centralizing procurement, thereby promoting cost-efficiency and adherence to procurement norms.

Under the new directive, hospitals are not authorized to undertake cart purchases or initiate bidding directly. In exceptional or emergency situations where immediate procurement via GeM cart is unavoidable, institutions must submit their demands to the CPA. The CPA will then assess the urgency and coordinate procurement on behalf of the hospital. Any deviation from these directives may result in disciplinary or legal action as deemed appropriate by the competent authority.

This initiative aligns with previous efforts by the Delhi government to streamline medical procurement processes. Earlier, hospitals and health centers were mandated to procure medicines exclusively from Pradhan Mantri Jan Aushadhi Kendras (PMBJK), allowing local purchases only in emergency situations. This step aimed to bring transparency to the medicine procurement process, ensuring affordable and quality medicines for patients.

The move also addresses concerns raised in the Delhi Assembly regarding medicine shortages and procurement inefficiencies. In previous discussions, it was highlighted that alternative methods of medicine procurement through local purchase or contract rate purchase were made "impossible" due to circulars issued by the Health Department, leading to challenges in ensuring consistent medicine supply.

By centralizing procurement, the Delhi government aims to mitigate such challenges, ensuring that hospitals have timely access to necessary medical supplies while maintaining fiscal responsibility. This policy is expected to enhance the overall efficiency of the healthcare system, ensuring better resource allocation and improved patient care.

In conclusion, the Delhi government's decision to centralize hospital procurement marks a significant step towards enhancing transparency, reducing inflated costs, and improving the efficiency of the healthcare system. By enforcing strict procurement protocols and leveraging centralized agencies, the government aims to ensure that public health institutions operate with greater accountability and effectiveness.

(Input from various sources)

(Rehash/Sakshi Thakar/MSM)