Raghav Chadha flags ‘cut money’ nexus between doctors and diagnostic centres in RS

New Delhi, Aug 6 (IANS) BJP Rajya Sabha MP Raghav Chadha on Thursday raised serious concerns in Parliament over the widespread practice of “cut money” or referral commissions between some doctors and diagnostic centres, alleging that the burden of this informal arrangement ultimately falls on patients.

Speaking in the House during Zero Hours, Chadha said an informal system has taken root in which doctors receive fixed commissions for referring patients for tests. “I am speaking on referral incentive and cut money arrangement between a few doctors and some diagnostic centres. This has become an informal arrangement. Rs 3,000 goes to the doctor, not to treat you but to refer you. There is a set commission rate, a dedicated agent and a parallel incentive economy,” he stated.

He explained that diagnostic centres list these payments as “marketing expense” in their accounts, while doctors describe them as “referral commission.” In reality, the cost is silently added to the patient’s bill. Chadha warned that this practice can inflate medical expenses by 15-20 per cent and is encouraging unnecessary tests and over-referrals.

“In sophisticated language, this is called doctor’s referral commission… The burden of this money is not borne by the diagnostic centre but by the patient,” he said, urging patients to remain alert to such “red flags” before undergoing medical tests.

Later, Chadha shared a video of his speech on X, writing: “In Parliament today, I spoke on the ‘cut money’ arrangement between some doctors and diagnostic centres/pathology labs. Diagnostic centres call it ‘marketing expense.’ Doctors call it ‘referral commission.’ All gets added to Patient’s hospital bill. A silent transaction that isn’t about your treatment. It’s about who referred you. Watch this before your next medical test.”

The MP’s intervention has drawn attention to an issue long discussed in medical ethics circles. Regulations under the erstwhile Medical Council of India and the current National Medical Commission prohibit fee-splitting and referral commissions, with penalties including suspension.

Chadha’s remarks in the Rajya Sabha have once again put the spotlight on the need for stricter enforcement to protect patients from inflated healthcare costs driven by commercial incentives rather than medical necessity.

–IANS

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