Hyderabad: The Comptroller and Auditor General (CAG) has found that government hospitals and Primary Health Centers (PHCs) in the state have failed to procure enough Essential Medicines List (EML) and Additional Medicines List (AML) items over the years.
The CAG noted that while the Corporation was supposed to review and update the EML/AML every two years, this was only done twice, in 2015 and 2019. In 2017-18, only 396 out of 530 items on the 2015 EML list were procured. This number dropped to 336 in 2018-19 and 266 in 2019-20.
Similarly, for the 2019 EML list, which required 338 items, only 209 items were procured in 2020-21, and 197 in 2021-22. Many health facilities did not implement the e-Aushadhi system to the Medicine Distribution Centre (MDC) level, and there were gaps and inadequate validation controls in the e-Aushadhi application.
Essential drugs are crucial for meeting the healthcare needs of a population. The CAG’s review showed that in 11 out of 14 district hospitals, medicines for 20 out of 39 therapeutic groups were not available.
Out of 16,016 Purchase Orders (POs) issued, drugs were supplied for only 13,950, leaving 2,066 POs unsupplied. No penalties were imposed on suppliers for this. Additionally, the Corporation issued 19 POs beyond the agreed Rate Contract (RC), causing an excess payment of Rs 1.65 crore to nine suppliers. Drugs worth Rs 17.13 crore, with leftover shelf lives ranging from 1 to 89 days, were issued to 1,259 health facilities between 2016-17 and 2021-22.
According to e-Aushadhi data, expired drugs valued at Rs 390.26 crore were not replaced timely, leading to significant financial losses for the government. Out of 39,258 batches of drugs/surgical/CTS items, 2,392 batches were not sent for quality checks. Additionally, 32 batches of drugs were issued to health institutions without mandatory testing.
Deficiencies in drug storage were observed in Central Medical Stores in Hyderabad, Mahabubnagar, and Warangal, making drugs susceptible to damage, contamination, and theft, posing risks to patients.
The CAG recommended that the government ensure the implementation of the e-Aushadhi application at all levels and strengthen its validation controls. The CAG also urged the government to follow rules regarding the timely return of near-expiry drugs to suppliers for replacement. Lastly, the EML and AML should be reviewed and updated at least every two years or more frequently if needed.
