The Union Labour Ministry is planning to set aside a revolving fund for purchase of drugs and maintenance of equipment in Employees State Insurance (ESI) hospitals across the country. The revolving fund system would be similar to the existing one meant to cover specialty and super specialty treatments in ESI hospitals.

According to ministry sources, the idea for setting up the funds was mooted after sensing the success of the system for super specialty treatments. The ministry has put up the matter before the state governments and is in the process of eliciting responses for further action, it is learnt.

The Government had introduced revolving fund system for specialty treatment after it realized the practical difficulties being faced by the ESI patients at the time of treatment. The lengthy procedure for sanctioning reimbursement of medical expenses to ESI patients was found to be troublesome for majority of the patients. It was to reduce the delay, the Government decided to operate a Revolving Fund.

The positive response to the fund has prompted the government to think on similar lines to make sufficient amount available with regional offices of ESI Corporation for immediate release for timely drugs purchase and proper maintenance of the equipment.

In the case of the existing revolving fund, the regional directors of ESI have been empowered to operate the funds. The directors issue the cheques in the name of the Insured Person through the Medical Officer in charge of the ESI Dispensary/Hospital. The government had also enhanced the financial powers of the Director of Medical and Rural Health Services (ESI) to sanction reimbursement claims. Due to this, the bills are sanctioned immediately. A number of diseases and investigations have been included in the purview of Revolving Fund.

ESIC comprises members representing Central and State Governments, Employers, Employees, Parliament and the medical profession and have about 340 lakh beneficiaries. It provides medical facilities through a network of 1452 ESI Dispensaries, about 3000 Panel Clinics, 307 diagnostic centres besides 140 ESI hospitals and 43 hospital annexes with over 26000 beds. For providing super specialist medical care the Corporation has tie ups with advanced medical institutions in the country, both in public and private sector. The medical benefit is administered with the active co-operation of State Governments.

The payment of cash benefits is made at the gross roots level through as many as 800 Local Offices and Cash Offices that function under the direct control of the Corporation.