Jakarta (ANTARA) - Health Minister Budi Gunadi Sadikin has urged regional governments to crack down on fraudulent practices in pharmaceutical procurement across local hospitals if they want to safeguard their hospitals' financial health.

He said in Bengkulu on Wednesday that government-owned hospitals, including Cipto Mangunkusumo Hospital and Sardjito Hospital, had been forced to purchase paracetamol at twice the normal price. Such markups, he said, place a heavy financial burden on hospitals and significantly reduce their income.

"So now I audit all the expenditures. Mr. (Bengkulu Governor), if you want your 10 hospitals to be (healthy financially), monitor them. The Finance and Development Supervisory Agency (BPKP) will help monitor," he said.

Sadikin emphasized that medicine procurement must be closely monitored to ensure prices are reasonable and hospital finances remain sound.

He also named another instance, in which a region acquired a cardiac catheterization laboratory (cath lab) for the first time at a cost of Rp 18 billion (around US$1.16 million).

"I asked private sector, they said the price is actually Rp 12 billion (around US$775 thousand). I asked, 'how come it's so different?' (They said) 'Oh, sir, it has different specs. It is like iPhones with cases. Without the case, the difference reaches up to Rp 6 billion (around US$387 thousand),'' the minister recounted the conversation.

Turns out, the item can be purchased with just Rp 8 billion (around US$516 thousand), and on top of that, it comes with a 10-year warranty, he said.

The minister warned regional leaders to remain vigilant against such corrupt practices, stressing that excessive markups are unacceptable and that President Prabowo Subianto strongly opposes them.

He also reminded regional hospitals to strengthen governance and improve productivity so they can provide better services while increasing revenue. Additionally, Sadikin cautioned regional governments against diverting hospital funds for other purposes, as this could compromise hospital productivity.

"If public health becomes better (from optimal services), people will elect you again (in regional elections). Healthcare contributes a lot of electability value," he said.

Hospital profits can be reinvested to enhance healthcare services, he said, and even help subsidize the national health insurance program (JKN) for those in need.

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Translator: Minister urged regional gov't to tackle frauds in
Editor: Azis Kurmala
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