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In an important step to control corruption in healthcare, the Delhi government has taken away the power of hospitals to make direct purchases of medicines, equipment, and other medical supplies. Instead, all purchases will now go through the Central Procurement Agency (CPA). This move is meant to bring more transparency and better control over how public money is spent in government hospitals.
According to senior officials in the Delhi health department, this decision will prevent hospitals from buying products at high prices or from suspicious sources. Earlier, hospitals used to make their own purchases, often leading to variations in quality and price. In many cases, this also allowed room for misuse and corruption.
The new policy means that all future requests for medical goods including medicines, devices, consumables, and linen supplies will have to be submitted to the CPA. The CPA will be the only body allowed to manage bidding, selection, and procurement processes for government-run hospitals.
This change is especially important because public hospitals serve millions of patients and any waste of funds can affect basic healthcare services. The government believes that this centralised method will help in getting fair prices and high-quality products. Dr. Pankaj Singh, a senior health official, said that this reform aims to create a more transparent and accountable system.
The CPA, which was established in 1994, is responsible for procuring medicines and surgical items for all Delhi government health institutions. It works under specific government guidelines to ensure fair practices. With this decision, its role is being expanded to cover all types of medical purchases for hospitals.
Interestingly, the change also applies to emergency situations. Even in urgent cases, hospitals must route their requirements through the CPA. However, in exceptional and truly urgent cases, the CPA will have a fast-track process to approve such demands quickly.
On June 2, 2025, the Delhi health department sent out a notice to all hospitals under its control. The notice clearly stated that hospitals must stop using the old method of direct purchases or the earlier “cart feature” on the Government e-Marketplace (GeM) portal. Hospitals that do not follow this order will be seen as breaking the rules. Such violations will be taken seriously and may lead to disciplinary or legal action against the officials involved.
The notice also explained that some hospitals were earlier found using outdated procurement methods that had been removed due to overpricing and misuse. Now, strict checks will be in place to stop any wrongdoing.
The Delhi government’s step is part of a larger plan to clean up the healthcare system. With more control in the hands of one specialised agency, the chances of unfair deals are expected to reduce. Patients, too, will benefit as hospitals will be able to offer better quality medicines and equipment without unnecessary delays or costs.
By reducing the chances of corruption and ensuring proper use of public funds, this reform can help improve healthcare delivery and restore trust in public hospitals.
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