Punjab prioritises medicines and emergency care under revised PLA fund rules

The Punjab government has implemented a new policy dealing with the utilization of PLA funds in tertiary care hospitals, 24NewsHJD TV reported on Saturday. 

In this regard, a formal notification has been issued regarding the use of PLA funds to ensure transparency, improve patient care, and reduce non-essential expenditures in tertiary care hospitals across Punjab.

It has been observed that despite generating their own revenue through user charges, diagnostic services, private wards/rooms and other hospital services, many hospitals continue to face shortages of essential medicines, medical and surgical disposables and other critical resources.

As a result, hospitals are often forced to procure medicines locally, placing an additional burden on their budgets. In several instances, PLA funds were utilized for purposes unrelated to patient treatment, undermining the core objective of these funds.

To address these challenges and ensure transparency and accountability, the department has formulated this comprehensive policy.

Under the policy, all hospital receipts will be deposited into designated bank accounts.

Priority will be given to expenditure on medicines and medical disposables, while emergency and life-saving services will be further strengthened.

The policy also clearly defines the percentage-wise utilization of funds and ensures audit compliance, code adherence and performance-based monitoring.

 It will apply to all tertiary care hospitals of Punjab and subordinate institutions of the Specialized Healthcare and Medical Education Department.

As per the policy, 60 percent of the procurement of medicines and essential medical and surgical disposables will be ensured through the PLA account.

The remaining 40 percent of the funds will be utilized for patient facilities, infrastructure and treatment-related needs. All local procurement of medicines and disposables will be made on a priority basis from PLA funds in accordance with Schedule-V.

The purchase of furniture, non-clinical equipment and IT upgradation will only be allowed once primary priorities related to patient care have been fulfilled.

PLA funds will not be used for the purchase of vehicles or for non-patient care activities. Moreover, all expenditures will require approval from the competent authority in line with the relevant Code, Financial and Procurement Rules.

With the issuance of this policy, all previous notifications and letters on the subject have been rendered ineffective, and the earlier sharing mechanism has been terminated with immediate effect.