KEMU private lab approval rings alarm bells

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Belying the claims of the Punjab chief minister to provide free treatment facilities to the poor, King Edward Medical University (KEMU) has decided to set up a diagnostic laboratory on the lines of the private sector, Pakistan Today has learnt.
The lab will be operated by the KEMU administration while private companies will provide machinery on “reagent” and “share” basis, implying private companies will receive a share from revenue generated. The spadework has been done with a place already rented out on Jail Road for the purpose. The project, a first in public sector hospitals across Punjab, has been launched considering the “scope of income generation” as per the minutes of the KEMU syndicate meeting, a copy of which is available with Pakistan Today. KEMU acting VC Professor Asad Aslam further said in the meeting that “the project will be assessed for one year and will then be considered for further extension.”
Why not equip Mayo Hospital? : However, the decision to set up a government diagnostic laboratory on lines with the private sector has sent alarm bells ringing amongst all stakeholders, who said no other public hospital had a private laboratory since government labs perform tests either free of cost or at nominal rates. Moreover, most diagnostic facilities including X-Ray, CT Scan, Doppler’s Ultrasound, Mammography, etc are already available at Mayo Hospital, and the new diagnostic facility would incur exorbitant costs for facilities already available either free-of-cost or at nominal charges. A senior doctor at Mayo Hospital said MRI and PCR test facilities were not available at Mayo Hospital and it was “pitiable” that the facilities were being established at a new private diagnostic centre instead of providing it for 7,000 mostly poor patients, who visit the Mayo Hospital emergency and outpatient department (OPD) everyday. Fears are being raised about a trend emerging of doctors “referring” patients to the costly private facility instead of offering them free-of-cost diagnosis. The comparative cost of a CT Scan at a private lab is around Rs 8,000, while Mayo Hospital offers it at the nominal price of Rs 3,000. However, KEMU acting VC Professor Asad Aslam said the diagnostic facility for indoor patients will remain “as it is now”, and all doctors will “never” recommend anyone to the private diagnostic laboratory for “monetary” reasons.
Private companies to be ‘set free’: Sources revealed the diagnostic facility will offer different machines placed on “Regent Basis”, “Share Basis” and “F.O.R Basis”. Mayo Hospital Pathology Department head Professor Munir explained the system, “Regent means that a company will provide a machine free of cost but the institution will pay for reagents. The share basis implies a company will set up a machine and will take a share in revenue generated, while the F.O.R basis means that the government will open up a letter of credit upon the recommendation of the company and will receive the machine.”
Sources said this clearly implies that private companies will be “set free” to earn profits off poor people, which was “ridiculous” since “the institutions was established to serve patients and not for business and profit earning”. However, Aslam said the model is already being practiced in Sindh where Dow Medical University has opened up several collection centres for private patients. “We have six teaching hospitals attached with the KEMU. Imagine the revenue the institution will generate once all doctors attached with the prestigious institution begin to recommend patients to KEMU diagnostic laboratory, whom are currently referred to Shaukat Khanum or Agha Khan or other private labs,” he added.
Doubts about validity of decision: Sources revealed that as per the KEMU Act the syndicate meeting should have included departmental representatives from Health, Higher Education and Finance departments who should be “not less than additional secretaries”, however as per the minutes of the syndicate meeting which approved the diagnostic lab deputy secretaries represented Higher Education and Finance departments, which raises doubts about the validity of the decision made.
However Aslam said, “To hold a meeting of any body including senate and syndicate only the quorum of one-third members should be present and there has been no mention of the specific members that should be present.” He further said the rates at the laboratory will be less than being charged at the private sector.