New Delhi, Aug 2026 : BJP Rajya Sabha MP Raghav Chadha on Thursday raised concerns in Parliament over the alleged practice of “cut money” or referral commissions involving some doctors and diagnostic centres, warning that such arrangements could increase healthcare costs for patients and encourage unnecessary medical tests.
Raising the issue during Zero Hour, Chadha alleged that an informal referral incentive system has emerged in parts of the healthcare sector, under which doctors receive fixed commissions for directing patients to particular diagnostic centres or pathology laboratories.
“I am speaking on referral incentive and cut money arrangement between a few doctors and some diagnostic centres. This has become an informal arrangement,” Chadha said, alleging that commissions could be paid to doctors simply for referring patients for diagnostic tests.
He claimed that the system operates through predetermined commission rates and intermediaries, creating what he described as a parallel incentive economy within the diagnostic sector.
According to Chadha, diagnostic centres may account for such payments as “marketing expenses”, while doctors may refer to them as “referral commissions.” However, he argued that the ultimate financial burden is passed on to patients through higher medical bills.
“In sophisticated language, this is called doctor’s referral commission… The burden of this money is not borne by the diagnostic centre but by the patient,” he said.
Chadha further warned that such practices could potentially increase medical expenses by 15-20 per cent and create incentives for unnecessary tests and excessive referrals. He urged patients to remain vigilant and look out for possible warning signs before agreeing to diagnostic procedures.
Later, Chadha shared a video of his parliamentary intervention on X, reiterating his concerns over what he described as a “cut money” arrangement between certain doctors and diagnostic laboratories.
The issue has broader implications for medical ethics and healthcare regulation. Professional conduct regulations in India have historically prohibited practices involving fee-splitting and referral commissions between medical practitioners and diagnostic or other healthcare establishments.
Rules framed under the erstwhile Medical Council of India (MCI) and regulations of the National Medical Commission (NMC) prohibit doctors from receiving commissions or benefits for referring patients, with disciplinary action possible for violations.
Chadha’s intervention has therefore renewed attention on the need for effective monitoring and enforcement of existing professional standards.
The issue is particularly significant as diagnostic testing forms an increasingly important part of modern healthcare. While diagnostic investigations are essential for accurate diagnosis and treatment, concerns arise when commercial incentives allegedly influence decisions about which tests patients undergo or where they receive them.
The MP's remarks have brought renewed focus on the need to ensure that medical decisions remain driven by clinical necessity and patient welfare, rather than financial incentives, while strengthening transparency and accountability across the healthcare system.
Team Maverick
