Charitable hospitals ‘Facilities Scam’ exposed

  • Fraud in millions, cheating Government every month
  • Facilities availed by many hospitals set up under the same Trust
  • Poor people deprived of benefits of the schemes
  • Mr Pritam Nachankar, Mumbai

Mumbai, 22ndJune – The Government extends facilities worth millions of rupees every month to the charitable hospital to help poor and economically weak patients to get treatment either free or at concessional rate. The charitable hospitals are legally bound in turn, to extend such facilities to poor patients for free or at concessional rate. Many charitable hospitals in the State have set up hospitals in different districts under the same trust and same name. All these hospitals are getting facilities worth millions of rupees from the Government but are not passing their benefit to the poor patients. The scam is going on even in many renowned hospitals in the State. The Law and Justice Department of the Government issued notices to two such hospitals when the scam was noticed, including one hospital in Pune. The Government is now verifying whether the facilities are extended to poor patients in other districts.

A hospital saves Income Tax worth Rs 8 crore

The charitable hospitals are given a rebate in income tax for extending facilities to poor patients. An officer from the Law and Justice Department informed that one such hospital saved income tax worth Rs 8 crore due to this facility. It shows that charitable hospitals are taking facilities from the Government and earning huge profits.

What is the hindrance in Government administration ?

A committee has been set up under the District Collectors in every district to verify the position in charitable hospitals about facilities offered by these hospitals to poor patients. The committee has to submit its report to the Government within three months as per an order issued by the Government specifically for this purpose. Setting up many hospitals under the same trust and not extending facilities to the poor people is due to the connivance of politicians and administration and a soft policy of the Government. It is, therefore, necessary for the Government to find out the persons in the Government administration involved in covering up such scams in charitable hospitals and take severe action against the guilty.

A hospital taking facilities from the Government has to pass on the facilities to the poor

An officer from the Law and Justice Department informed that even if the Government doesn’t give land for setting up a hospital, and it gives concessions in payment of income tax, electricity and water charges etc., so also, if such hospital sets up another branch under the same name or by using the profits earned by the original hospital, it is mandatory for such hospital to extend facilities to the poor people at concessional rate. (Please note the scam of charitable hospitals in not passing on the facilities to the poor despite availing such facilities from the Government for the poor. – Editor)

Maharashtra Government has given lands worth millions of rupees, at a very nominal cost to charitable hospitals for treatment of poor patients at concessional rates. The charitable hospitals also get a rebate of 30% in payment of income tax. Thus, these hospitals save millions of rupees

under tax rebate. In addition, these hospitals get concessions in electricity and water charges. It is mandatory for charitable hospitals to reserve 10% beds for offering free treatment to the poor patients out of 2% of their total income while 10% beds are to be reserved for poor patients and offer them 50% concession in treatment. The State Government has passed a law for this purpose as ‘Maharashtra Public Trusts Act, 1950’.

The Government scheme

Type of patient Facilities as per the annual income limit of a family Services Available
Indigent Patient Income below – Rs 1,80,000 Free treatment
Indigent patient Income below – Rs 3,60,000 50% concession
Editorial Perspective

Is there any Government department where there is no scam ? Such frauds will not stop till scammers and their accomplices are not severely punished.