Punjab Introduces Strict Policy For PLA Fund Usage

LAHORE: (Web Desk) – The Punjab government has issued a new policy regulating the utilization of Patient Levy Account (PLA) funds in tertiary care hospitals, aiming to enhance transparency, strengthen patient care, and reduce non-essential expenditures. The policy, formally notified on Saturday, comes in response to concerns that despite hospitals generating revenue through user charges, diagnostic services, private wards, and other facilities, shortages of essential medicines, medical disposables, and other critical resources persist.

Previously, PLA funds were sometimes used for purposes unrelated to patient treatment, placing additional strain on hospital budgets. The new framework mandates that all hospital receipts be deposited into designated bank accounts, with priority given to procuring medicines and medical disposables and improving emergency and life-saving services.

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The policy specifies that 60 percent of PLA funds must be spent on medicines and essential surgical disposables, while the remaining 40 percent will be allocated for patient facilities, infrastructure, and treatment-related needs. Local procurement of medicines and disposables will be prioritized according to Schedule-V, and expenditures on non-clinical equipment, furniture, or IT upgrades will only be permitted after patient care priorities are met.

Additionally, PLA funds cannot be used for vehicle purchases or activities unrelated to patient care, and all expenditures must receive approval from the competent authority in compliance with relevant codes and procurement rules. The new policy supersedes all previous notifications and letters, immediately terminating the earlier sharing mechanism, and applies to all tertiary care hospitals under the Specialized Healthcare and Medical Education Department in Punjab.