New Delhi, August 6, 2026 (Yes Punjab News)
Aam Aadmi Party Rajya Sabha MP Raghav Chadha on Thursday raised concerns in the Rajya Sabha over the alleged practice of referral commissions, commonly referred to as “cut money”, between some doctors and diagnostic centres, claiming that the financial burden of such arrangements is ultimately borne by patients.
Speaking during Zero Hour, Chadha alleged that an informal referral system has evolved in which certain doctors receive fixed commissions for directing patients to specific diagnostic laboratories.
“I am speaking on the referral incentive and cut money arrangement between a few doctors and some diagnostic centres. This has become an informal arrangement. Rs 3,000 goes to the doctor, not to treat you but to refer you. There is a set commission rate, a dedicated agent and a parallel incentive economy,” he told the House.
According to Chadha, diagnostic centres allegedly account for these payments as “marketing expenses”, while doctors describe them as “referral commissions”. He claimed that these costs are ultimately recovered from patients through higher medical bills, increasing diagnostic expenses by an estimated 15 to 20 per cent and encouraging unnecessary tests.
“The burden of this money is not borne by the diagnostic centre but by the patient,” Chadha said, urging people to remain vigilant while undergoing medical investigations.
Later, the MP shared a video of his speech on social media platform X, reiterating his allegations and stating that patients should be aware of hidden commercial incentives that may influence referrals for diagnostic tests.
The issue has long been debated within medical ethics and healthcare policy circles. Existing professional conduct regulations framed under the erstwhile Medical Council of India and continued under the National Medical Commission prohibit fee-splitting and referral commissions, with disciplinary action, including suspension, for violations.
Chadha’s remarks have renewed attention on the need for effective enforcement of ethical standards in the healthcare sector to ensure that medical decisions are guided by patient welfare rather than commercial considerations.
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