Raghav Chadha Raises Issue of ‘Hidden Referral Commissions’ Between Doctors and Diagnostic Centres in Parliament

New Delhi, August 6, 2026: Speaking in the Rajya Sabha, BJP MP Raghav Chadha raised concerns over the alleged practice of hidden referral commissions between certain doctors and diagnostic centres. Describing it as a "parallel incentive economy," Chadha alleged that patients often remain unaware that a part of the amount they pay for diagnostic tests is diverted as referral commissions under the guise of "marketing expenses." He further highlighted that "Patients pay the bill, someone else gets the commission," adding that patients come to hospitals not to finance referral commissions, but to receive treatment.
Chadha said the burden of such commissions is ultimately built into patients' bills while citing the Indian Journal of Medical Ethics, which states that unethical referral practices can increase patients' medical bills by 15–20%, encouraging unnecessary diagnostic tests and excessive referrals. He observed that in some cases, payments are made "not for treating you, but for referring you."
Chadha also noted that such referral commissions are already prohibited under professional ethics regulations. He pointed out that the Medical Council of India (MCI) Code of Ethics Regulations, 2002 prohibited the practice as "fee splitting", and that the National Medical Commission's Registered Medical Practitioner (Professional Conduct) Regulations, 2023 specifically prohibit referral commissions, prescribing suspension of registration for one to three months for violations. He further observed that, in cases of gross misconduct, offences relating to cheating, criminal conspiracy and consumer protection laws may also be attracted.
Emphasising that his intervention was not against the medical profession, Chadha said that the issue is not doctors, the issue is the cut-money referral system. He also noted that the overwhelming majority of doctors serve patients with honesty, compassion and dedication.
He urged patients to remain alert to potential "red flags" when being pressured to visit a particular diagnostic centre and stressed that every patient should have the freedom to choose any equally accredited diagnostic facility. Calling for greater transparency and ethical compliance, he said the objective is to protect patients from unethical referral practices while safeguarding the reputation of the overwhelming majority of honest doctors.