Punjab introduces landmark PLA policy to ensure transparent use of hospital funds
LAHORE: In a major move toward financial transparency and improved patient care, the Punjab's Specialized Healthcare Department has implemented a comprehensive Personal Ledger Account (PLA) Policy for the first time in its history, placing a complete ban on the misuse and unnecessary spending of hospital funds.
Under the newly enforced policy, the previous fund distribution mechanism has been abolished with immediate effect. The practice of allocating shares from PLA funds to doctors and administrative staff has also been discontinued, ensuring that hospital-generated resources are used solely for the benefit of patients.
According to the official notification, a clear and standardized framework has been introduced for managing commercial accounts and personal ledger accounts in government teaching hospitals. The policy strictly regulates fund utilization to address long-standing shortages of medicines and essential medical equipment.
A defined spending structure has been laid down. Sixty percent of PLA funds must now be allocated to the purchase of medicines and essential medical supplies. The remaining 40 percent can be used for emergency requirements, infrastructure upgrades, and improvements in patient facilities.
The department has also prohibited expenditures that are not directly related to patient treatment. This includes a ban on the purchase of vehicles and other non-essential items from PLA funds. Furniture and information technology equipment may only be procured if they are clearly linked to patient facilitation and service delivery.
All hospitals have been instructed to deposit their collections into designated commercial bank accounts to ensure proper financial tracking. To strengthen oversight, fund utilization will be monitored through Key Performance Indicators (KPIs), and every use of PLA funds will require mandatory approval from the Board of Management and the competent authority.
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Health officials stated that the new policy is designed to ensure timely availability of medicines, better-equipped hospitals, and improved quality of care for patients. They added that the initiative will help curb financial irregularities and promote a culture of accountability across the public healthcare system.
The policy will be applicable to all tertiary care hospitals across Punjab, marking a significant shift toward patient-centered financial management and transparent governance in the province’s health sector.
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