REDUCTION OF ‘OUT OF POCKET’ EXPENSES OF PATIENTS THROUGH

INNOVATIVE PRACTICES OF THE

GOVERNMENT OF WEST BENGAL

Additional Delivery System of Medicines & Consumables

24 Hours at affordable cost through a chain of Fair Price Medicine Shops.

 

Period Gross sales (MRP) in INR

Discounts availed by patients (in INR)

Number of patients

Dec 2012 - Oct 2014(23 months)

489 crore 303 crore 1.08 crore

The Ministry of Health, Government of India has requested all the State Government to consider adopting the West Bengal model with or without modifications in accordance with their requirements.

Access to advance Diagnostic Imaging Facilities & Dialysis Services at affordable cost for reduction of out of pocket expenses of the patients

Equipments (Digital X-Ray, CT Scan, MRI scan and Dialysis machines) procured by the State Government by utilizing available funds (147 crore INR)

Services through operation & management partners under PPP round the clock

Total of 47 Hospitals covered under the scheme for different services. Already, services became functional in 20 hospitals

The selected O&M partners pay a fixed concession fee for each of the services in the concerned hospital. Selection of O&M partners undertaken on the amount of concession fee offered by the technically qualified applicants

The concession fees are fully utilized for the benefit of free services to the poor patients under this scheme. Adjustment of concession fee vis-à-vis free services are system generated in the soft ware installed in the centre

The O&M partners collect user charges from hospital patients on approved rates which are significantly lower than the market rates

Period Gross Revenue INR

Discounts availed by patients (in INR)

Number of total patients

Number of free patients

March – October 2014 (8 months)

1.25 crore 34.20 lac 18004 4622

Initial Benefits & Reduction of Out of Pocket Expenses

Reform in the free drug policy from June 2011 to enhance availability of essential and vital drugs free of cost to the ailing patients in all the Government Hospitals for reduction of out of pocket expenses

Significant increase in the budget allocation for drugs which is at present Rs 403 crore annually

Revamping in the entire policy on procurement of drugs. Pre-qualification of participating organizations in the tender now made mandatory to ensure quality medicines from the manufacturers

A dedicated web enabled software ‘SMIS’ (Store Management Information System) introduced to generate procurement orders against fund allotments. No manual processing of orders and bills are allowed.

Quality audit for drugs strengthened. Inclusion of NABL accredited testing laboratories have been made

Benefits for the patientsSubstantial increase in the availability of essential and vital drugs for free supplies to the ailing patients with benefits of more than Rs 400 crore annually

The State Government has issued Order to allow free services for therapeutic, surgeries, Beds, Diagnostics and Pathological investigations to all patients in primary and secondary hospitals in the State

Benefits for the patientsAll patients in the hospitals are treated at par with principles of equity and universal access to health care services

CONCLUSION

Summary of reduction of out of pocket expenses in two years through innovative practices of the Government of

West Bengal

PRODUCTS/SERVICES REDUCTION OF OUT OF POCKET EXPENSES (INR)

FAIR PRICE MEDICINE SHOPS THROUGH PPP 303.0 CRORE

FAIR PRICE DIAGNOSTIC FACILITIES AND DIALYSIS SERVICES THROUGH PPP

0.34 CRORE

FREE DRUG POLICY 403.0 CRORE

TOTAL REDUCTIONS 706.34 CRORE

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