Today, even an apple a day cannot keep the Doctor away. Everyone of us, time and again had the need to pay visit to a Doctor. Generously (?) shelling out bucks to get treated\/cured, we have often mumbled,\u201d these guys are making BIG money\u201d. Yes, they are but its a charge for their services, noble indeed.<\/p>\n
Interestingly, just a few days back; Narayana Hrudayalaya IPO subscribed over 8 times, in a first of its kind. Apollo already has presence across continents and is listed; additionally whole new crop of hospitals are sprawling across the nation. Swasth Bharat\u2026! <\/em><\/p>\n As a general thumb rule, when the going gets big it might also get murkier. I have often wondered could there be a gimmick to route money through these medical care institutions and come clean, may be not?<\/p>\n Wait! I stumbled across this case of Lilavati Hospital (Yes, the one catering the ultra rich in the posh suburbs of Mumbai)<\/em>. I thought this may be a one off case, but then Vasan Eye Care; their \u201cvisionary\u201d people have also been entangled with black money trails & money laundering inquiries.<\/p>\n This draws us to the pertinent question; can hospitals be used to launder money? Well, medical care is after all a business and like every other, it may also be used as a \u201cnoble\u201d vehicle for conversion of ill-gotten money into legitimate.<\/p>\n I am particularly intrigued of the \u201cCharitable\u201d Trusts form of hospitals attached with medical colleges. Primarily since \u201cdonations\u201d are received while admission to medical schools and they may be easily routed without suspicion. The Medical Council of India (MCI) chief being caught in the scandal of approving medical colleges further corroborates the fact; medical care institutions need more attention.<\/p>\n Risk professionals; let\u2019s give food for our brains:<\/p>\n The medical industry in India has been growing at a double digit CAGR annually, exciting most investors and fund managers. But I am skeptical, since I have had experiences of auditing financial statements of medical institutions, the structures and revenue streams grow clockwise avoiding suspicion. Just another red flag, may be for many.<\/p>\n Ultimately, upholding the sanctity of this industry depends on their professionals. But as risk professionals, we need to pay close attention to this industry. The noble services they provide can cause of trouble for the economy.<\/p>\nMoney Laundering through Hospitals- Risk Management<\/h3>\n
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