KEM Hospital chemist contract renewal confronts dispute: A practical reader guide

KEM Hospital chemist contract renewal confronts dispute: A practical reader guide

MUMBAI: A proposal to extend the contract of a medical store at KEM Hospital in Parel for another five years without inviting fresh tenders has come under scrutiny in the BMC. Opposition corporators have alleged that the arrangement increases the financial burden on poor patients due to poor discounts on medicines.

He also questioned the hospital’s practice of procuring medicines from the on-campus pharmacy rather than selecting suppliers through competitive processes based on prices and discounts. He alleged that delays in finalising the list of medicines available free to patients further increase their dependence on the store. He has sought an inquiry into whether hospital authorities directed departments to purchase medicines from the on-campus pharmacy even though this was against regulations.

Both corporators allege that the discount offered by this chemist is 12.5% on the MRP, while at other major hospitals, including AIIMS, vendors must offer discounts of at least 30%, said Azmi. Of approximately 2,500 medicines intended to be covered under free-medicine schedules, only around 800 had been finalised, he said. Haider has sought an independent audit of discounts provided between 2021 and 2026, a comparative market study and an independent valuation of the premises to determine whether the proposed terms maximise public benefit.

In a letter to the civic administration, Azmi alleged that patients pay more due to inadequate discounts on medicines.