Rs 700 Cr In Maharashtra's Health Department Funds Remains Unused

According to media reports nearly Rs 700 crore allocated for medical supplies by Maharashtra's Public Health Department has remained unused, and is currently stranded with Haffkine Biopharmaceutical Corporation which, until recently, was tasked with procuring medical essentials for government hospitals.

The issue has extended over the past four years, with an estimated failure by Haffkine to procure medical drugs and equipment worth Rs 2500 crore, resulting in suffering for patients and a concerning surge in mortality rates at government-run hospitals, a media report suggests. 

Reportedly, Haffkine, responsible for centrally procuring medicines, consumables, and medical devices for government hospitals and medical colleges, struggled to establish an efficient system which has led to funds becoming entangled.  

As per media reports a recent investigation by the Directorate of Health Services revealed that approximately Rs 700 crore of departmental funds remain entangled, with Rs 150 crore currently unaccounted for. 

Furthermore, medical colleges, such as JJ Hospital, have faced significant challenges. In fiscal year 2022-2023, JJ Hospital transferred Rs 14 crore to Haffkine but received medical items valued at only Rs 5 lakh. Even in the preceding year, they had transferred Rs 17 crore but had not received goods or equipment of equivalent value. 

The Haffkine debacle has prompted a thorough review of financial dealings within medical colleges, emphasizing the pressing need for a more efficient procurement system, the report stated.

Milind Mhaiskar, additional chief secretary of the public health department, has expressed confidence in resolving these accounting issues while officials from the Directorate of Health Services stress that the unused amounts are tied to specific items in certain fiscal years, making it challenging to allocate fresh funds for the same items, the report further informed.