BJP MP Raghav Chadha highlighted the issue of the alleged link between doctors and pathology labs during the monsoon session in Rajya Sabha on Thirsday, August 6. He claimed that the “referral system” is raising medical bills of patients.
Calling the 'referral system' a parallel economy, Chadha claimed that a charge is levied not for treatment but only to refer a patient. “I am raising the issue of referral incentive and cut money arrangements that are going on between some doctors and some diagnostic labs. This has become an informal arrangement not to treat to buy to refer you, money is put in the doctor's pocket,” he said.
Referring to Indian Journal of Medical Ethics, Chadha said this extra expense on the patient inflates medical bill by 15-20% in certain cases. “The issue is not only about the inflated bill but a practice of unnecessary medical tests, and over-referrals.
The BJP MP alleged that there is a set commission rate and specific agents. This cost is termed as referral commission by doctors and diagnostic centres term it as marketing expense. He alleged that the referral commission is typically charged on a percentage of the procedure cost, while in certain cases, the diagnostic centres send the doctor on foreign trips.
Flagging the relevance of this problem in tier-2 or tier-3 cities, Chadha urged that the referral commission between doctors and diagnostic centres needs to be ended.
He also cited Medical Council of India's ban on this practice in 2002, naming it as “fee splitting", whereas the National Medical Commission prohibited it in 2023 as "referral commission”, and put a provision of suspension of up to three months.
The doctors are not a problem but the cut money referral system is a matter of concern,” he said.
He also warned patients about doctors sending them to a particular diagnostic centre or feeling “irritated” that a they visited another lab for tests.
“If you see a marketing executive or promotional material of a diagnostic centre in the doctor's clinic, look out for that too,” he added.
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