The Department of Supply Management has written to the Metropolitan Police Circle, Teku recommending action against three hospitals in Kathmandu and one in Lalitpur for fraud: Neuro Hospital in Bansbari, Grande International Hospital on Tokha Road, Ishan Children’s Nursing and Maternity Home in Basundhara and B&B Hospital in Lalitpur.

Likewise, the department has been preparing to write to the Metropolitan Police Circle to launch legal proceedings against Norvic International Hospital, Thapathali and Vayodha Hospitals, Balkhu Chok. These two hospitals have been accused of cheating patients by collecting a service charge which is illegal.

These hospitals were found to be involved in wrongdoing during a check carried out by the department a month ago. “We have completed taking clarifications from the hospitals.

Having finished our investigation, we have handed over the paperwork to the police circle,” Director General Kumar Prasad Dahal of the department said.

The government has allowed hospitals to collect 5 percent health service tax or 13 percent value added tax (VAT) from patients. However, these hospitals have been found adding up to 13 percent service charge on top of the health service tax to the bill. The hospitals have been charging extra fees under different headings such as bed service charge and nursing service charge, among others.

In addition, the hospitals have been found to be violating the government rule requiring them to provide free hospital beds to patients from low income groups and underprivileged communities. The law requires hospitals to provide 10 percent of the total number of beds without charge to the indigent.

According to the department, Ishan was found to be taking additional charge for rooms set aside for attendants of patients admitted to the intensive care unit. During the inspection, Grande was found charging extra for nursing care service and Neuro Hospital was found collecting a 10 percent service charge from patients.

Likewise, Vayodha had been collecting a 10 percent nursing care charge on top of 13 percent VAT. As per the department, a similar case has been uncovered at B&B Hospital.

Norvic has been collecting a 13 percent service charge from patients. It has also been accused of not renewing its operating licence. The hospital contains 130 beds even though it has received permission for only 100 beds.