To ensure uninterrupted medical services to insured beneficiaries, the Employees’ State Insurance Corporation (ESIC) has issued a directive to all ESI institutions emphasizing the need to maintain optimum inventory levels of medicines and drugs. The notification comes in light of reported instances of stock-outs and expiry-related wastage at various ESI locations, impacting service delivery and causing financial loss to the Corporation.
The circular, issued with the approval of the Medical Commissioner (RC & PC), reiterates the importance of strict inventory management based on established principles of Material Management, such as reorder levels and buffer stock.
🩺 Key Directives for ESI Hospitals:
Hospital Formulary Creation
Institutions must develop a Hospital Formulary considering drugs listed in:
- Valid DG-ESIC Central Rate Contracts
- CPSU-supplied medicines on GeM
- Jan-Aushadhi medicines
- National List of Essential Medicines (NLEM)
Prescriptions to Align with Formulary
- Heads of Institutions must instruct Medical Officers to prescribe only those medicines included in the approved formulary.
- Prescribing non-formulary medicines should be minimized.
Optimal Inventory Maintenance
- Hospital stores should implement inventory controls based on Reorder Level, Buffer Stock, and Lead Timeprinciples.
- Overstocking and understocking should be strictly avoided.
Avoid Unnecessary Local Purchases
- Priority should be given to medicines available through Central RC, GeM, and Jan-Aushadhi channels.
- Local purchases should only be made when absolutely necessary and after exhausting preferred sources.
Reorder Level Implementation
- ESIC has provided guidelines on Reorder Level (ROL) calculation to standardize procurement practices and ensure sufficient availability without wastage.
📌 Why This Matters:
Maintaining an optimal inventory ensures:
- Uninterrupted patient care
- Efficient use of public funds
- Prevention of drug expiry and wastage
- Better adherence to government procurement norms
ESIC’s latest directive reflects its commitment to delivering reliable healthcare services while maintaining financial and operational discipline across all its medical facilities.
Institutions are advised to treat this matter with urgency and document their compliance accordingly.
