Health panel to manage funds

HYDERABAD: In a classic case of every law having a loophole, the medical and health department has found a way out of the government order that prohibits departments from utilising the user charges that they collect. The government initially promoted the concept of user charges by stating that those who generate the funds can utilise them for development of services in their respective departments.Later it ordered that all user charges be deposited in the state treasury. However, the cash-strapped health department has found a way out of the government's stranglehold over the funds. It was learnt that the existing government order on these charges does not prohibit a registered society from collecting the charges and using the same. The department has therefore decided to set up hospital and medical college development committees, a top government official disclosed to The Times of India on Sunday. The decision to set up the societies was taken after consultation with legal authorities and top officials of the finance department, the official said. It may be recalled that there has been opposition to the recent government order, GO Ms no. 90 that seeks to establish hospital development societies. The government hospital staff associations as well as doctors have opposed the GO stating that this would result in privatisation of the services and make government medicare out of reach of the common man. According to the health department's plans, the proposed societies would be free to fix user charges for various services and use the money for the development of hospitals. But it has been opposed by employee associations saying that this provision would take medicare out of reach of the poor and needy.