Medicos Stipend Not Salary Expense: New Accounting Method to reduce PG Medical Fee in Maharashtra

Mumbai: Noting that stipend paid to medical students working in salary cannot be treated as a salary expense while calculating the hospital expenses and hence determining their fee, the Maharashtra Fee Regulatory authority has proposed a change in accounting methods for the required calculations

With this correction of the stipends’ calculation norm followed by the hospitals and medical colleges is expected to further bring down the fees for PG medical education in the state.

In its recent observation, the FRA noted that the medical institutes are putting stipend which is being given to PG medical students under the head Salary expenditure evidently resulting an increase in the fee structure. The FRA stated that with this practically, whatever is paid as stipend is taken back in a form of fees.

This is against the spirit and purpose for which stipend is paid to the PG students as per Medical Council of India (MCI) norms, it stated

he FRA held that the money spent by medical colleges to pay stipends to resident doctors will no longer be considered salary expenditure and allowed he institutes to include the stipend amount under the “hospital expenses” head.

The decision to this effect was recently seen at a meeting by the FRA authorities, who noted,

“It has been the practice to consider the expenses incurred towards paying stipend to PG students under the head salary. After having discussed with officers of Directorate of Medical Education, it is revealed that stipend is paid to the PG student for the services rendered by him in the hospital attached to such medical college. In view of prevailing practices of considering expenditure incurred towards paying stipend under the head salary, it results in increase in the fee structure, to that extent. Practically, whatever is paid as stipend is taken back in a form of fees.”

It is therefore felt expedient to rectify the approach in this regard; the FRA held and as a resolution directed the following:

“It is resolved that amount spent in discharge of liability on account of payment of stipend shall not be considered as an expenditure. College shall be at liberty to add, show this expenditure under the head “hospital expenses”. The amount of “Hospital Deficit” would be subject to the elated limit, norms laid down separately.”

Norms of Hospital Deficit:

Restrict the amount of hospital deficit to 25% of actual deficit or Rs. 25,000/- per student, in UG course and 25% of actual deficit or Rs. 2 lakh in P.G. course, whichever is lower. This shall apply to all the health science courses having hospitals attached irrespective of its age. Provided, that Authority having regard to location, amount of deficit and other relevant factors may vary the deficit to a reasonable sum.

The move will benefit thousands of PG medical students in the state who will now be charged less fee based on the above calculations

Medical Dialogues had earlier reported about the FRA’s decision that “excess” fees charged by medical colleges from PG students admitted under the Management and NRI quota last year should be used to cross-subsidize the fees charged from students this year.

Medical colleges in the state, have 35% for Management Quota, 50% seats for Merit Quota, and 15% are Non-Residential Indian (NRI) seats.

Read Also: Cross Subsidy: PG medical aspirants this year likely to be charged lower fee in Maharashtra