E-Paper
'Marketing expense, referral commission': Raghav Chadha raises lab-doctor nexus issue over medical tests
Raghav Chadha said the issue is especially relevant for tier-2 or tier-3 cities, where the referral commission is becoming an informal economy.
BJP MP Raghav Chadha on Thursday flagged the alleged nexus between doctors and pathology labs in Rajya Sabha, alleging that the “referral commission” has become a parallel economy, inflating the bill of patients.
Chadha said that the money is taken not for treatment but just 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,” Chadha said.
Raghav Chadha said that there is a set commission rate, dedicated agents and a parallel incentive economy.
“Diagnostic centres call it marketing expense." Doctors call it a referral commission. This is usually charged on a percentage of the procedure cost, and in some places, the diagnostic centres even send the doctor on foreign trips,” he added.
The BJP MP from Punjab said that MCI had banned the practice in 2002, calling it “fee splitting", and the National Medical Commission banned it in 2023 as "referral commission”, and even put a provision of suspension of 1 to 3 months. This cost, he said, is borne by the patient and not by the diagnosis centres, inflating the bill by 15-20 per cent in some cases.
“The problem isn't even the inflated bill but a practice of unnecessary medical tests, and over-referrals has started. The issue isn't against the doctors but against the cut money referral system,” he said.
Chadha gives a list of ‘red flags’ for patients
Raghav Chadha also gave a list of red flags for the patients to be aware of. This included doctors sending them to specific diagnostic centres or getting “irritated” that a patient used another equally accredited lab for the tests.
“If you see a marketing executive or promotional material of a diagnostic centre in the doctor's clinic, beware of that as well,” he said.
The MP said that the issue is especially relevant for tier-2 or tier-3 cities, where the referral commission between doctors and diagnostic centres is becoming an informal economy that needs to be stopped.
