Bharatiya Janata Party (BJP) member and Rajya Sabha MP Raghav Chadha has expressed concern over the existence of a parallel system of linking measurers and diagnostic laboratories, alleging that referral commissions are ultimately driving up the costs of the patients.

In the Rajya Sabha, Chadha had claimed that some doctors are accepting commissions from pathology and medical diagnostic centres to send patients for a medical examination, instead of just for medical reasons.

He said that these are referral payments that can become a routine business procedure, that are based on a fixed commission rate, and have dedicated agents and bonuses between the doctors and diagnostic laboratories. These dividends, Chadha said, have sometimes been seen as marketing costs at some diagnostic centres and are referred to as marketing commissions by doctors.

The MP also asserted that such costs are ultimately borne by patients, adding between 15 and 20 per cent to the costs of diagnosis in some instances.

To this end, Chadha noted that the Medical Council of India has banned the “fee splitting” aspect of medical practice under existing rules, which are 2002. In addition, he added that NMC reiterated the prohibition in 2023 by clearly stating that referral commissions are “unacceptable” and that the commission will “suspend” practicing medical professionals for up to three months for instances of breaches.

Increasing the enforcement of the current regulations, Chadha said that decisions on the healthcare should be made solely on patient welfare and not on monetary benefits. He called on authorities to promote the transparency and accountability of the healthcare system so as to prevent patients from paying unnecessary medical costs and doctors from engaging unethical referral practices.