Annual Report of Office of Auditor General
Related story
An urgent plea to protect healthcare providers
KATHMANDU, April 14: The Office of Auditor General (OAG) says that two profit-making private hospitals received grants from the government even though they have not renewed their permits.
The 53rd annual report of the Office of Auditor General, which was made public on Monday, states that the two healthcare institutions received a combined Rs 40 million in 2014/15.
The government distributed a total of Rs 832.6 million as grants to 56 healthcare institutions in Fiscal Year 2014/15. However, it neither has record of beneficiaries, nor it follows guidelines and norms for distribution of grants. "There is neither record of distribution, nor audit reports and monitoring reports. Grant amount has been disbursed without inserting a clause 'Action will be taken against anyone found guilty of breaching laws while utilizing grants amount' in the release letter," the report said, adding: "Such distribution without clear policy and standards should be controlled immediately."
The report further notes that grants have been distributed, making occasional decision and by breaching guidelines, standards and basis. Four health institutions operated by profit-making multi-purpose cooperatives, received Rs 93.02 million in 2014/15, according to the report.
"The government shou-ld have asked organizations receiving conditional grants to furnish progress reports. But it raised grant amount to Rs 832.6 million to 56 healthcare institutions in Fiscal Year 2014/15 compared to Rs 530.3 million to 66 healthcare institutions in the previous year without assessing utilization of grant amount," the report stated.
Most of the healthcare institutions receiving the grants are community-run hospitals. But monitoring agencies do not have any record of the services extended by these institutions by utilizing the grant amount.
Baburam Gautam, spokesperson of OAG, said grants have been distributed to profit-making healthcare institutions even though there is no clear policy for such distribution. "This is probably the first time that the government distributed grants to private hospitals," added Gautam.
Most of the healthcare institutions used the grant amount to purchase equipment, while some used the amount to meet their operation cost.
An OAG official, who requested anonymity because he is not authorized to talk to media, said hospitals receiving government grants should have provided free services to people. "But we have not received such reports yet," he said, adding: "Rationale of grants distribution for private hospitals can be established. But it has to be distributed through open competition," the official added.
Dr Suresh Kumar Kanodia, managing director of Nepalgunj Medical College, told Republica that they received the grant from Safe Motherhood Program of the government. Responding to a query on why the permit of his institution was not renewed, he simply said it is in the process of renewal.
