Following an apology from a Mumbai based leading private hospital over the cut practice, Maharashtra Medical Council (MMC) has recently referred the case for further action to the state government as healthcare institutions are not governed by the Maharashtra Medical Practitioners Act, 1961. Cut practice is the term given to exchange of commission for referring patients.

MMC had sent a show-cause notice recently to this Hospital asking why action shouldn't be taken against it for reportedly paying a commission to doctors for referring patients for hospitalisation.

MMC is a quasi-judicial body that oversees functioning of the medical community. The complaint against the Andheri corporate hospital, too, came up during a core committee meeting to take up complaints filed against doctors. MMC is in receipt of papers with details of the scheme of awards for the referring doctor from this hospital.

The hospital has allegedly been sending out a prescribed format to various doctors exhibiting 'rewards' for the number of admissions done by the respective doctor. This is nothing but offering a cut for doctors to refer patients for admission to the hospital. The 'reward' as per the prescribed format ranges from Rs. 1 lakh for 40 admissions per annum to Rs. 2.5 lakh per annum for 75 admissions.

The format needs doctors to sign and stamp a statement that reads: "I am very happy to know that the said hospital has introduced a scheme for membership by invitation to senior doctors, for partnering with the hospital, and jointly help bring about unique patient experience in line with the best of global hospitals."

MMC has been cracking down on the 'cut practice' ever since a Mahad-based doctor, Dr Himmatrao Bawaskar, petitioned it after receiving a "commission" from a well-known diagnostic chain for referring a patient for Magnetic Resonance Imaging (MRI).

As per MMC version, soliciting and receiving any gift, gratuity, commission or bonus in consideration of or return for the referring recommending or procuring of any patient for medical, surgical or other treatment amounts to violation of the (MMC) code of conduct.