Govt teaching hospitals’ funds: New policy introduced to bring about transparency

LAHORE: The Punjab government is committed to transparency in government institutions and in this regard, a new policy has been introduced to ensure transparency in government teaching hospitals’ funds.

A notification of the policy regarding the use of Commercial and Personal Ledger Account (PLA) funds of hospitals has been issued. The main objective of this policy is to make the use of Commercial and Personal Ledger Account (PLA) funds in tertiary care hospitals of Punjab standard, effective, transparent and patient-friendly. The aim of this policy is to solve the problems of improper expenditure, inadequate use of financial resources and unavailability of essential medicines and medical disposables. The aim of this policy is to improve the efficiency of emergency services and hospitals.

It has been observed that despite generating their own revenue through user charges, diagnostic services, private ward/room charges and other hospital services, hospitals are facing shortage of essential medicines, medical and surgical disposables and other critical resources. Due to these shortages, hospitals have to purchase medicines locally, which puts additional burden on the budget. On several occasions, PLA funds were spent on activities that were not related to patient treatment, which has disrupted the primary purpose of these funds.

The health department has formulated this policy to address the issues, ensure transparency and accountability. Under the policy, all hospital receipts will be deposited in specific bank accounts. Under the policy, expenditure on medicines and medical disposables will be prioritized. Under the policy, emergency and life-saving services will be improved. Under the policy, the percentage utilization of funds will be clarified; audit and code compliance and monitoring based on performance results will be ensured.

This policy will be applicable to all tertiary care hospitals of Punjab and subordinate institutions of Specialized Healthcare and Medical Education Department, 60 percent of the procurement of medicines and essential medical and surgical disposables will be ensured from the PLA account. The remaining 40 percent of the funds will be directly related to patient facilities, infrastructure and treatment.

All local procurement of medicines and disposables will be made from PLA funds on priority basis as per Schedule V. Furniture, non-clinical equipment, IT upgrading will be possible only when the primary priorities have been met. PLA funds will not be used for purchases of vehicles or for non-patient care. All expenditure will be subject to the approval of the concerned authority as per the Code, Financial and Procurement Rules.

After this policy, previous notifications and letters will no longer be effective and the previous sharing mechanism will be deemed to have ended with immediate effect, a spokesman of the department said.

Moreover, a meeting was held in the Specialized Healthcare and Medical Education Department under the chairmanship of Provincial Health Minister Khawaja Salman Rafique on the ongoing development schemes for the financial year 2025-26.

The meeting discussed the establishment of Nawaz Sharif Institute of Cancer Treatment and Research Lahore, Nawaz Sharif Medical District Lahore, Maryam Nawaz Institute of Cardiology Gujranwala, Nawaz Sharif Institute of Cardiology Sargodha, Sahiwal Institute of Cardiology, Nawaz Sharif Cardiology Center Murree and Jinnah Institute of Cardiology Lahore, establishment of burn units in Bahawalpur and Rahim Yar Khan, establishment of children’s hospitals in Murree, Rawalpindi and Multan, establishment of new medical colleges in Layyah, Okara, Bahawalnagar and Narowal, teaching hospitals Sialkot and The ongoing progress on the establishment of Center of Excellence for Nursing and Midwifery in Multan, Rawalpindi and Lahore was reviewed. Provincial Health Minister Khawaja Salman Rafique stressed on the completion of all ongoing development projects on time.

Khawaja Salman Rafique said that the improvement of the health sector is the top priority for Punjab Chief Minister Maryam Nawaz Sharif. Efforts are being made to provide the best health facilities to the people.

Copyright Business Recorder, 2026