New Delhi. BJP Rajya Sabha MP Raghav Chadha on Thursday expressed serious concern in the Parliament over the alleged practice of ‘cut money’ or referral commissions between some doctors and diagnostic centers. He said that ultimately the patients have to bear the financial burden of this informal arrangement. Speaking in the Rajya Sabha during the Zero Hour, Raghav Chadha said that such a system has developed between some doctors and diagnostic centers, in which doctors are given fixed commission in exchange for referring patients for tests.

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He said, “I am raising the issue of referral incentives and cut money between some doctors and diagnostic centers. This has become an informal system. Doctors are paid up to Rs 3,000 not for treating a patient, but for referring them. This is facilitated by fixed commission rates, agents, and a parallel incentive economy.” Chadha alleged that diagnostic centers report these payments as “marketing expenses” in their accounts, while doctors record them as “referral commissions.” However, the reality is that the full amount is added to the patient’s bill.

He said such a system can increase medical costs by 15 to 20 percent and encourage unnecessary testing and excessive referrals. He said, “In sophisticated language, this is called a doctor referral commission, but the burden is borne by the patient, not the diagnostic center.” He also urged patients to be vigilant about such “red flags” before undergoing medical tests.

Later, Raghav Chadha shared the video of his speech on the social media platform X, writing, “Today in Parliament, I raised the issue of a ‘cut money’ arrangement between some doctors and diagnostic centers/pathology labs. Diagnostic centers call it ‘marketing expenses,’ doctors call it ‘referral commission,’ but ultimately the entire burden is added to the patient’s hospital bill. This isn’t treatment, but a transaction to who referred the patient. Next time you order a medical test, please check this.”

The Raghav Chadha issue has reignited long-standing questions about medical ethics. Under the rules of the former Medical Council of India and the current National Medical Commission, fee sharing and referral commissions are prohibited. Such cases also provide for disciplinary action against doctors, including suspension. Chadha’s statement has once again sparked calls for ensuring patients are treated based on medical need, rather than commercial interests, and for strict action in such cases.