Health ministry issues directions for reducing higher capital cost, reducing dependency on a single manufacturer

New Delhi: A committee set up by the health ministry has said government-run medical institutions should cut capital costs, dependency on a single manufacturer and introduce technology change.

The committee, set up in April, has made recommendations on the duration of warranties and comprehensive maintenance contracts (CMC) of medical equipment, consumables, operation and maintenance of medical equipment by a single agency for better patient care.

Currently, all medical equipment comes with a five-year warranty and five-year maintenance contracts.

For this, two meetings were held in May and July respectively to deliberate the matter in the present scenario.

The health ministry has directed all AIIMS/ Institutes of National Importance (INIs)/ Institutes/ Hospitals/ Hospitals/ Hospitals to adhere to the fresh guidelines while procuring medical equipment and consumables in their respective institutes.

“For high-end medical equipment with effective life cycle of 10 or more years, the Committee recommends for 2 years’ warranty and 8 years CMC to be taken subsequently. For Medical equipment with effective life cycle more than 2 years & less than 10 years and estimated cost more than 5 lakhs, the Committee recommends 2 years’ warranty and CMC for the remaining effective life cycle period to reduce initial outgo of capital expenditure,” the committee recommended in the report.

Disadvantages of existing ststem

Notably, the existing system of 5-year warranty and 5 years CMC for medical equipment involves certain disadvantages like higher capital cost, Higher custom duty, dependency on manufacturer, etc.

Manufacturers generally avoid upgradation of hardware and software during the warranty period.

However, 2 years warranty and 8 years plus CMC for medical equipment having a longer period of effective life cycle of more than 10 years have advantages such as low capital cost, lower custom duty, more competition and the latest technology bringing low cost expenditure to the hospitals aiding to provide optimum medical services to the patients.

Queries sent to the health ministry spokesperson remained unanswered till press time.