The Central Government Health Scheme (CGHS) suffers from many ailments, the Comptroller and Auditor General (CAG) of India has pointed out. The CGHS drug formulary hasn’t been updated to include new drugs prescribed by doctors, and thus the procurement of these under the scheme didnot happen between 2016 and 2022. Wellness Centres therefore had to purchase them from local chemists at higher rates. Of the 2,030 drugs listed in formulary, the Medical Store Organisation (MSO) finalised rate contracts for just 220-641 during 2016-17 to 2020-21.
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The finalisation of rates was very low in the tender enquiries issued for rate contracts by MSO.