Business Standard

EMRI board to have govt nominee

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BS Reporter Chennai/ Hyderabad

The Emergency Management and Research Institute (EMRI) , which operates the 108 ambulance services, would soon have a government-appointed board member. Though the institute gets 95 per cent of the operational expenses from state governments, it does not have a government member on its board.

The move comes in the wake of a study conducted by the National Health System Resources Centre of the Ministry of Health and Family Welfare, which recommended EMRI to induct a government-appointed member to its board.

EMRI has operations in nine states and would add three more soon. These nine states together contribute about Rs 600 crore, which accounts for 95 per cent of the expenses. EMRI contributes the remaining five per cent (Rs 30-40 crore) towards research and leadership costs.

 

The study also suggested that EMRI consider cutting down the salaries of its top brass apart from going for an independent validation every year of its claims and data on emergency response.

“We are studying the recommendations and will make changes in the salary and cost structures accordingly,” EMRI chief executive officer Venkat Changavalli said at a press conference here on Friday. To begin with, the institute would stop future recruitment of top brass, do a rejig of the existing positions and combine the work and stop future hikes. According to him, the health ministry evaluation sought to build on the EMRI model of emergency response system, not replace it.

EMRI, which was conceived by Satyam founder B Ramalinga Raju, was accused of misusing government funds and of setting targets for the ambulance pilots (drivers) and other paramedical staff of finding a fixed number of cases everyday. It may also be recalled that Ramalinga Raju, who funded the initiative in the initial stages, has put the land, given by the government, as collateral for the Rs 42 crore loan he raised from Axis Bank.

Changavalli said EMRI and the nine state governments had filed a counter with respect to a public interest litigation filed in the Supreme Court. The PIL raised questions about the land that EMRI owned, the ownership of EMRI assets including the ambulances, transparency in operations, technology support extended and management capacities. Changavalli said government was the owner of the land given to EMRI and the ambulances purchased.

The CEO said pending salaries were paid yesterday. The chief operating officer, who fixed patient targets for ambulances, has tendered his resignation and a district manager had been sacked for “not behaving properly with women”.

Meanwhile, EMRI has shortlisted GMR group and Piramal Health Care Limited as potential funding partners.

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First Published: May 16 2009 | 12:52 AM IST

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