Medical Education / Hospital / Doctors

20 Blood Banks fined ₹2.3cr for overcharging

The penalty was the culmination of a three-year-long investigation of invoices generated by the blood banks between 2014 and 2019.

The Health Master

August 15, 2022

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Blood Bank Centre Donation Unit — Picture: Pixabay

Last Updated on January 14, 2024 by The Health Master

Mumbai: In one of the biggest crackdowns to date, the state blood regulatory authority has penalised the city’s leading private hospitals for overcharging blood, blood products and related tests.

State Blood Transfusion Council (SBTC) has collected an eye-popping Rs 2.3 crore in fines from 20 blood banks attached to hospitals and standalone ones for charging 100 per cent to 400 per cent higher processing fees for the life-saving product.

The penalty was the culmination of a three-year-long investigation of invoices generated by the blood banks between 2014 and 2019.

The seed for the action was sown about seven years ago when a joint inspection by the Food and Drug Administration (FDA) and SBTC found that one out of three blood banks was flouting the prescribed rates.

While it is illegal to buy and sell blood in India, blood banks charge a processing fee to prepare and run various blood product checks. It is here that discrepancies are found.

The most common offence observed across banks was overcharging for grouping and cross-matching of blood —the official rate, if grouping/cross-matching is done through automation is Rs 280, and semi-automation is Rs 120.

Click for more on FDA Maharashtra

Yet, banks charged anywhere between Rs 300 and Rs 1,400; many hospitals charged based on the category of the room the patient was admitted in. A hospital charged up to Rs 1,320 for deluxe class patients.

While a unit of single donor platelet is supposed to cost Rs 11,000 inclusive of all tests, several banks charged tests separately.

One hospital charged over Rs 5,000 for donor screening, a cost that should be included in Rs 11,000. Some charged excessively for platelets and cryoprecipitate.

Many doubled and tripled the amount against the fixed rate of Rs 400. Despite not having the machine, one blood bank charged patients for the chemiluminescent tests (used in donor infectious disease screening).

Dr Pradeep Vyas, additional chief secretary (health), said such a step had been taken for the first time. “It was an old pending issue that has reached a logical conclusion.” We will take action whenever we encounter overcharging,” he said.

An SBTC official noted that while hospitals have paid up Rs 1.3 crore, another Rs 86 lakh is expected soon.

Last September, SBTC roped in a CA firm after corruption appeared to be widespread. The banks were fined 20 per cent of the excess amount they charged.

Data collected via RTI by Chetan Kothari revealed fines were collected from PD Hinduja (Rs 33.3 lakh), Jaslok (Rs 17.37 lakh), Kokilaben Ambani Hospital (Rs 14.7 lakh) and Bombay Hospital (Rs 12.62 lakh), among others.

Some standalone banks, such as Bandra’s Mahatma Gandhi Seva Mandir and Pallavi Blood Bank, were fined Rs 8.9 lakh and Rs 6.3 lakh. A few running under the PPP model on BMC premises were also billed at higher rates.

One hospital head said it was a case of ambiguity about charges. A hospital CEO said no patient was charged more but the cost of associated tests varied.

Jitendra, CEO of Jaslok Hospital, said, “In our case, there was a partial non-compliance due to an oversight.” We rectified it immediately after being pointed out in April 2018.”

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