Wadia Hospital stops admitting patients, BMC announces it will clear all dues

The hospital had stopped admitting patients and had put out a notice about the same claiming that it could not afford medical equipment and supplies, as BMC had stopped clearing dues

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Brihanmumbai Municipal Corporation (BMC) has announced that it will clear all dues for Wadia hospital. The civic body made this announcement after Parel's Wadia Hospital stopped admitting patients due to lack of funds and blamed the civic body for the same. On Sunday, BMC said that the pending dues of the last quarter will be cleared by next week.

The chairperson of the civic health committee, Amey Ghole said that the civic body has paid the hospital till September 2019. He further assured that BMC will now pay for the October-December quarter as well, but it will deduct 10 per cent of dues since the hospital has failed to comply by the rules.

The hospital had stopped admitting patients and had put out a notice about the same claiming that it could not afford medical equipment and supplies, as BMC had stopped clearing dues. Alongside, Lal Bavta General Kamgaar Union, the union for employees and nurses of Wadia Hospital, had announced a protest from January 13 to 15 for payment of salaries and pension.

So far, BMC is complied to pay dues of ₹110 crore to Wadia hospital to run the children and maternal departments.

What Happened?

In 2010, Wadia Hospital had entered in a contract with BMC and state government to run the units, Bai Jerbai Wadia Hospital for Children and Nawrosjee Wadia Maternity Hospital. As per the contract, BMC is supposed to pay for 75 per cent of the operational cost of Bai Jerbai Wadia hospital, alongside sharing the operational cost of the maternity hospital with the state government.

According to Ghole, there were various reasons why the dues were withheld since October 2019. He said that it was required for the KEM Hospital Dean and Accounts Officer to be part of the hospital’s managing committee which was yet to happen. He added that the scrutiny of accounts showed that close to 18 employees were receiving double salaries and a matter had to be looked into. He also alleged that the hospital was not using the scheduled medicines that the BMC advised.

According to The Indian Express, the hospital subsequently had to shut admissions in cardiology, neurology, nephrology, orthopaedic and pathology departments on Saturday citing it could no longer pay vendors. The report also showed that BMC has to pay ₹31.44 crore to Nawrosjee hospital and ₹105.85 crore to Bai Jerbai hospital.

Meanwhile, Dr Minnie Bodhanawala, Medical Director, Wadia Hospital denied the claims made by BMC regarding the hospital not following the rules. She said that they had complied with all terms and conditions as per the government resolution. She added that a PIL has been filed in court and the matter was under judicial consideration.

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