BMC Claims Red Circular System Improves Medicine Supply In Civic Hospitals Despite Shortage Complaints

Mumbai: Amid continued complaints about medicine shortages in Brihanmumbai Municipal Corporation (BMC) hospitals, the civic administration has claimed that the implementation of the Red Circular (RC) procurement system has led to a marked improvement in drug supply. According to officials, more than 60 per cent of essential medicines are currently available across major municipal hospitals, while the remaining supplies are being restored in phases.

Past Shortages

Medicines for all civic hospitals are procured collectively through the central procurement department based on consolidated demand. However, hospitals — from KEM Hospital to peripheral facilities — have faced an acute shortage of medicines over the past year. The administration has now stated that the situation is expected to stabilise soon.

Under the RC system, medicine requirements from all hospitals are collected and categorised into 12 schedules. Tenders are then floated based on aggregate demand. For instance, if the total requirement for a specific injection is one lakh units, bids are invited accordingly. Companies selected through the tender process are mandated to supply medicines within a stipulated time frame. If a supplier fails to meet the deadline, hospitals are permitted to make emergency local purchases to avoid disruption in patient care.

Centralised Model

The Red Circular system is a centralised medicine procurement mechanism aimed at reducing dependence on local purchases and multiple tenders. Orders are processed through designated officials, ensuring standardisation and oversight. Medicines not covered under RC approval still require separate local tenders.

Senior civic officials said the RC system, introduced last year, has helped streamline the procurement process and improve transparency. “The RC system has made medicine supply faster and more transparent. Over 60 percent of medicines are now available, and the remaining supplies are arriving in phases. This system is proving beneficial for patients,” said a senior official from BMC’s Health Department.

Despite these claims, patients and hospital staff continue to report shortages, highlighting the need for sustained monitoring and timely supply to ensure uninterrupted healthcare services.

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