3 weeks ago
Raghav Chadha flags 'cut money' nexus between doctors, diagnostic centres
Raghav Chadha, a member of India's Parliament, talked about a problem involving doctors and medical testing centres.
He said some doctors get extra money when they send patients to certain diagnostic centres for tests.
This payment is sometimes called 'cut money' or a referral commission.
The testing centres record it as a 'marketing expense,' while doctors call it a 'referral commission.'
Either way, Mr. Chadha said the money is quietly added to the patient's bill.
This means patients end up paying more for their medical tests.
He warned that these payments can make medical bills 15 to 20 percent higher.
He said they also encourage doctors to order tests patients may not need.
Mr. Chadha told patients to watch for red flags before getting medical tests done.
He noted that medical rules already ban this practice and allow penalties like suspension.
BJP Rajya Sabha MP Raghav Chadha raised concerns in Parliament over 'cut money' referral commissions between some doctors and diagnostic centres.
Chadha said doctors receive fixed commissions for referrals, citing Rs 3,000 paid per patient referred for tests.
Diagnostic centres book the payments as 'marketing expense' while doctors call them 'referral commission,' with the cost added to patient bills.
Chadha warned the practice can inflate medical expenses by 15-20 per cent and encourages unnecessary tests and over-referrals.
Regulations from the Medical Council of India and the National Medical Commission prohibit fee-splitting and referral commissions, with penalties including suspension.
- Who
- Raghav Chadha, BJP Rajya Sabha MP
- What
- Raised concerns in Parliament over 'cut money' referral commissions between some doctors and diagnostic centres, which he says are added to patient bills.
- Where
- Rajya Sabha, New Delhi, India
- When
- Thursday, during Zero Hours
- Why
- To highlight that the practice inflates medical expenses by 15-20 per cent and encourages unnecessary tests.
Key facts
- Speaker
- Raghav Chadha, BJP Rajya Sabha MP
- Forum
- Rajya Sabha, Zero Hours
- Stated referral commission
- Rs 3,000 per referral
- Impact on medical expenses
- 15-20 per cent inflation
- Diagnostic centres' label
- Marketing expense
- Doctors' label
- Referral commission
- Regulating bodies
- Medical Council of India and National Medical Commission
- Penalties
- Including suspension
Quotes
Raghav Chadha
BJP Rajya Sabha MP
“I am speaking on referral incentive and cut money arrangement between a few doctors and some diagnostic centres. This has become an informal arrangement. Rs 3,000 goes to the doctor, not to treat you but to refer you.”
thehansindia.com










