Gujarat Hospital CEO and three others arrested for conducting unnecessary procedures to claim insurance
The CEO of a multi-specialty hospital in Ahmedabad, Gujarat, along with four others, has been arrested for allegedly orchestrating a scam involving unnecessary medical procedures under the Pradhan Mantri Jan Arogya Yojana (PMJAY), an insurance scheme for low-income families. These procedures, including angioplasties, are suspected to have caused the deaths of two patients.
Rahul Jain, 37, the CEO of Khyati Multispeciality Hospital, was tracked and arrested in Udaipur, Rajasthan, using technical surveillance. The other four individuals—Chirag Rajput, Milind Patel, Pankaj Patel, and Pratik Bhatt—were detained from a farmhouse in Kapadvanj, Gujarat, on Tuesday.
Investigators revealed that Jain managed audits and worked with hospital directors to address irregularities. A police officer stated, “Khyati Hospital generated ₹11 crore in revenue over 18 months, with 70% derived from PMJAY patients and 30% from referrals by other doctors and hospitals.”
Chirag Rajput, the hospital’s marketing and branding director, allegedly pressured patients into unnecessary stent procedures and coerced doctors to comply. He earned a monthly salary of ₹7 lakh and oversaw operations in the hospital’s catheterisation lab.
Milind Patel, a marketing executive with a ₹40,000 monthly salary, arranged medical camps in villages to recruit patients. Meanwhile, Pankaj Patel and Pratik Bhatt reportedly threatened patients with potential complications if they refused the suggested procedures.
The scheme was exposed after two patients, Nagarbhai Senma, 59, and Mahesh Barot, 45, died following angioplasties performed at the hospital. They had been brought in from a free medical camp in Borisana village, Mehsana, which was allegedly conducted to exploit the PMJAY scheme offering up to ₹5 lakh in health coverage.
“Of the 19 villagers brought in from the camp, 12 underwent angiography at Khyati Hospital, leading to the deaths of Senma and Barot on November 11,” an investigator disclosed.
Earlier, cardiologist Prashant Vazirani was arrested, and Gujarat Health Minister Rushikesh Patel initiated an inquiry. Three cases were filed at the Vastrapur police station in Ahmedabad on November 13. On November 20, lookout circulars were issued against four other accused, including hospital promoters Sanjay Patolia and Rajshree Kothari.