In a move aimed at tightening financial oversight and eliminating inflated billing practices, the Delhi government has banned all hospitals under its jurisdiction from making direct or cart-based purchases via the Government e-Marketplace (GeM) portal. From now on, all procurements must be routed exclusively through the Central Procurement Agency (CPA), as per a government order issued recently.
Why the Ban on Direct Purchases?
According to senior officials, the step has been taken to “curb the rampant misuse of direct procurement options” which were being used even for large-value purchases. The GeM portal was originally designed to bring transparency to public procurement. However, audits flagged significant deviations, with hospitals allegedly opting for cart-based purchases without sufficient price comparison, leading to higher costs and reduced accountability.
What the New Order States
The official directive reads:
“All hospitals under the Delhi Government shall stop all direct purchase and cart-based transactions on the GeM portal with immediate effect. The procurement of items shall now only be carried out through the Central Procurement Agency (CPA).”
It further states that hospital officials found violating this order may face disciplinary or legal action.
Emergency Procurements? Here’s What Changes
While regular procurement will now be CPA-driven, emergency needs haven’t been ignored. Hospitals can raise urgent demands with the CPA, which will assess and approve such procurements after proper justification.
This system ensures that critical healthcare services are not disrupted while keeping control over spending.
What Prompted This Change?
Recent financial audits revealed that:
- Some hospitals were using direct purchase options for high-value items.
- Prices were significantly higher than market rates in several cases.
- Lack of centralized tracking made it difficult to monitor and compare rates.
This move comes in the backdrop of increasing scrutiny on public healthcare spending in Delhi and aims to build transparency into the system.
FAQs on Delhi Govt’s GeM Purchase Ban for Hospitals
Q. What is the Government e-Marketplace (GeM)?
GeM is an online procurement platform launched by the central government to streamline the purchase of goods and services for public institutions. It encourages competition and transparency in pricing.
Q. What is the Central Procurement Agency (CPA)?
The CPA is a centralized body under the Delhi government responsible for purchasing and managing medical and healthcare inventory for public hospitals.
Q. Can hospitals still procure urgently needed items?
Yes. In case of emergencies, hospitals can place special procurement requests with the CPA, subject to validation and approval.
Q. Why is this change significant?
It helps plug loopholes that allowed inflated or unjustified purchases, thus ensuring taxpayer money is used efficiently while improving procurement transparency.
Q. Which hospitals are affected by this order?
All government hospitals operating under the Delhi government’s health department are mandated to follow this new directive.