Thiruvananthapuram: The Health Department has instructed that branded medicines should not be purchased for treatment under the Karunya Health Insurance Scheme, as this would lead to unnecessary expenditure. Instead, hospitals must provide the generic drugs supplied by the Medical Services Corporation. Funds available under Karunya are meant for hospital development. Government hospitals have also been directed not to advise unnecessary tests outside the facility.

Strict conditions have been set for how hospitals may use the funds reimbursed under the Karunya scheme. If a medicine outside the essential drugs list is used, the doctor must provide a written justification. Doctors have expressed opposition to this directive.

Doctors are questioning the rule that such medicines may be purchased only with the approval of a committee comprising the hospital superintendent, store superintendent and pharmacist.

As per the instruction, if a medicine outside the essential drug list is unavailable, generic alternatives may be purchased using the Karunya fund, but they must be of use to all patients. Medicines should be procured only through the Development Committee, Neethi stores or Karunya Medical Stores.

Instead of directing patients to undergo tests outside, hospitals should create testing facilities using the insurance funds. Insurance money must be used for purposes such as purchasing new equipment, upgrading basic infrastructure, carrying out equipment repairs, and appointing technical experts.

Karunya funds cannot be used to directly hire hospital cleaning staff. However, ward assistants, nursing assistants, nurses and technicians may be appointed. Specialist doctors may also be recruited for specific projects, including cath lab services, neurosurgery, joint replacement procedures and IVF. Only 40 per cent of the Karunya fund may be used for staff appointments.