SHILLONG: Due to non-execution of annual maintenance contract for the Magnetic Resonance Imaging (MRI) machine in Shillong civil hospital, the Health and Family Welfare department incurred an avoidable expenditure of Rs 1.50 crore towards its repair besides depriving the patients the benefit of its services for almost three years.
The report of the Comptroller and Auditor General (CAG) of India stated that the Ministry of DoNER accorded administrative approval in August 2012 for procuring the MRI machine for civil hospital at Rs 4.98 crore, to be funded in the ratio of 90:10 between the Centre and the state government.
The Hospital Management Society (HMS) of Shillong civil hospital was to procure and install the MRI machine.
After following the tendering procedures, HMS on December 19, 2012 accepted the lowest bid of Rs 5.17 crore offered by M/s Philips Electronics India Ltd. (M/s Philips) and entered into an agreement on March 22, 2013 with the firm for supply, installation and commissioning of the MRI machine.
The agreement stipulated that M/s Philips would provide warranty for the machine for a period of two years from the date of commissioning of the machine and a comprehensive annual maintenance contract (AMC) for another five years after the warranty period, on payment of additional amount by the state government.
The scrutiny of records of HMS in April 2018 revealed that the MRI machine was commissioned on October 1, 2013.
However, HMS did not sign the AMC contract with the supplier, pending approval from the state government.
) Meanwhile, three months prior to the expiry of the warranty period, M/s Philips offered in July 2015 HMS an AMC for Rs 38.60 lakh, which included delivery of liquid helium for the MRI machine.
The MRI machine stopped functioning on October 14, 2015 shortly after the end of the two years’ warranty period. On December 8, 2015, M/s Philips brought to the notice of HMS that the MRI machine was lowering in ‘helium level’ with the risk of the magnet getting quenched and reminded that the warranty period was over. M/s Philips also informed HMS that the cost of reviving a quenched magnet would be very high, and the machine would not be repaired in the absence of an AMC, post warranty period.
Despite the caution of M/s Philips, HMS did not enter into an AMC and on February 20, 2016, the magnet of the MRI machine was found quenched and required replacement. In August 2017, state government sanctioned Rs 1.89 crore for repair of the MRI machine and it was repaired in June 28, 2018 at a cost of Rs 1.89 crore which included a warranty for a period of one year only.
The audit report said that by not entering into an AMC and allowing the MRI machine to become non-functional, the department also incurred an avoidable expenditure of Rs 1.50 crore besides depriving the patients the benefit of its services for almost three years-from October 2015 to June 2018.
On this being pointed out, the additional chief secretary, Health and Family Welfare department stated in November 2018 that AMC could not be entered in to initially, as the company demanded 100 per cent payment in advance which required processing for sanction.
According to CAG report, the reply is not acceptable, as the department had two years of warranty (October 2013 to September 2015) to plan for the AMC and process the case. Further, the government had sufficient time (four months) before the expiry of warranty period of the MRI machine when AMC was offered.
“Thus, the department’s failure to enter into an AMC contract for an expensive item like an MRI machine, which enhances the accuracy of diagnostic services significantly, led to avoidable expenditure of Rs 1.50 crore, besides denial of required services to the patients for almost three years”, the report added.
