CAG report highlights glaring shortages in essential drug stocks in Karnataka

Bengaluru: Health institutions in the state had glaring shortages in the number of essential drugs stocked up, much less than the Indian Public Health Standards (IPHS) norms, a report by the Comptroller and Auditor General of India (CAG) has shown.

According to the report, the Karnataka State Medical Supplies Corporation Limited (KSMSCL) had, between 2017-18 and 2021-22, not procured all the essential drugs that were indented from health institutions across the state.

For example, of the 761 essential drugs that health institutions submitted a written order to the corporation for in 2020-21, only 238 were procured and 55 were allowed to be procured by the institutions locally.

"Test checked district hospitals had less than 50 essential drugs against the requirement of 128, having a shortage of 61 per cent; all test checked taluk hospitals had only 35 or less essential drugs against the requirement of 81, having a shortage of 57 per cent. CHCs had only 25 or less drugs, having a shortage of 61 per cent against 64 essential drugs," read the report.

None of the health institutions had the prescribed number of very essential and most essential drugs, it added.

The overall percentage of supply of drugs as against those required was consistently below 35 per cent in 2016-22 across all five districts tested -- Ballari, Bengaluru Urban, Dharwad, Kolar, and Mysuru.

The report also provided illustrative cases of difference in costs due to the health institutions locally procuring some of the drugs, with one such pain medication costing 783.7 per cent more in 2019-20 due to the rate per unit differing from Rs 2.15 at KSMSCL to Rs 19 by local suppliers.

Other lapses the audit found include expired drugs worth Rs 23.03 crore in 2019-22 not being disposed of and being stored alongside regular drugs, sourcing from blacklisted firms such as SM Pharmaceuticals in 2020, and ineffective quality control mechanisms.

Additionally, the report has also highlighted the procurement of drugs from the Karnataka Antibiotics and Pharmaceuticals Limited (KAPL) under the 4(g) exemption during this period as "against the spirit of transparency" and unjustified. The Bengaluru-based firm was found short supplying drugs worth Rs 5.17 crore, delaying supply by between 305 to 714 days (nearly two years), and causing an additional expenditure of Rs 59.60 crore to the KSMSCL by quoting higher costs. The report also noted that 12 batches of seven drugs supplied by KAPL were declared not of standard quality by the Drugs Controller