The Parliament’s Public Accounts Committee (PAC), headed by Congress leader K.C. Venugopal, pulled up the Directorate of the Central Government Health Scheme (CGHS) for ignoring repeated recommendations by the panel to take various steps to improve its services, including periodically revising its drug procurement policy.

Sources said Union Health Secretary Punya Salila Srivastava told the panel that the government was in the process of revising the rate list for various treatments, adjusting to the current rate of inflation. Several empanelled hospitals have pulled out of the scheme due to the low rates sanctioned by the CGHS for various medical procedures.

The scheme was started in 1954 with the objective of providing comprehensive medical care to Central government employees, both serving and pensioners, their dependent family members, and other categories of CGHS cardholders as notified by the government.

The PAC was reviewing the 2022 performance audit report of the Comptroller and Auditor General on the subject ‘Procurement and Supply of Drugs in CGHS’. The report had pointed out that the Ministry had not ensured the drug formulary was periodically revised, and as a result, the CGHS could not buy new drugs.