Can We Charge Minimal Fees for Pathology Tests in Our Rural CSR Initiative?

Dear Seniors,

As part of our Corporate Social Responsibility, we have already started an OPD center and are providing medical aid with a doctor to slums and surrounding communities below the poverty line at the PHC Sub Centre. Since the last two months, we have received a very good response from the people.

Now, these days, Malaria and Dengue are spreading very fast, and people are not able to go to the hospital and follow up on their treatment. Therefore, we have planned and set up a Pathology Laboratory in the Sub Centre to help make correct diagnoses and start immediate diagnostic treatment.

This pathology laboratory performs simple investigations like Malaria, CBC, Hemoglobin, Widal test for Typhoid, RA test for Arthritis, Urine Routine, ESR, Blood Sugar, ANC Profile, etc., which are not expensive but play a vital role in exact diagnostic treatment.

The Primary Health Centre has agreed to provide infrastructure facilities to start the Pathology Laboratory at the sub-centre.

My question is, can we charge money from villagers (not as a business, but at a level of no profit, no loss)? We plan not to charge money according to market rates (a very, very low amount per test, no profit, no loss) for the blood investigation.

Please, I require your guidance.

Please help me.

Regards, Saudagar Bhosale

(Maharashtra)

When you intend to charge [whatever the amount], then you CAN'T CALL IT a CSR activity. I suggest asking your company to FIRST get the definition of CSR right—this is the expense assigned/allotted from the company's profits [whatever the percentage].

Going by the direction in which the thinking process within your company seems to be going, IF the suggestion does get implemented, the next step would surely have to be to 'cook' the account books—obviously, since the No Loss/No Profit charges need to be shown BUT which will be AT VARIANCE to the concept & practice of CSR legally & ethically.

Regards,
TS

You can tie up with Big Pathologist Lab, where they will be conducting social activities such as free camps and discounted camps.

Regards,
Satish

Your company is providing a very good service for the locals. It should always be remembered in CSR that what is free is often perceived as worthless. Since you are providing the facility close to them, you can charge them for the actual expenses. If you charge a fixed amount, you will need to maintain detailed accounts to justify your expenditure. Hence, while you can provide the equipment and manpower under CSR (I presume the Primary Health Centre is part of your company), you can charge for the actual expenses of chemicals and syringe needles. In fact, it should be your aim to do so, so that they understand the value of the service.

Regards,

Primary Health Centre agrees to provide infrastructure facilities from the government side (Medical Officer & Grampanchayat) to start a Pathology Laboratory at the sub-centre village and can charge only the expenses of chemicals & kits. Manpower and a fully set-up pathology laboratory are provided by our company free of cost.

I have created a chart in which I have mentioned the price difference in Blood & Urine Investigations between the Market Rate of Rs. 80/- (Blood group) and Our Company's Rate of Rs. 30/- (Blood Group), covering only the expenses of chemicals & kits.

I am still confused. Can we proceed with this project? Please guide us.

Regards, Saudagar Bhosale

With the above suggestions, I am a little concerned about the charges you are asking for the chemical kits. Can these be directly purchased by the required individuals to make this a complete CSR initiative, as the rest of the things will be free of charge from your end?

Regards,
Jayant

It is okay to charge a nominal service fee so that people use the service judiciously. The service charge may be a small fraction, and the balance costs can be borne under a CSR initiative.

When you intend to charge whatever amount, then you can't call it a CSR activity. I suggest you ask your company to first get the definition of CSR right—this is the expense assigned or allotted from the company's profits, whatever the percentage may be.

Going by the direction in which the thinking process within your company seems to be going, if the suggestion does get implemented, the next step would surely have to be to 'cook' the account books—obviously, since the no-loss/no-profit charges need to be shown but will be at variance with the concept and practice of CSR legally and ethically.

Regards,
TS

I have been in the CSR sector for 14 years. I never suggest CSR activities should be free of cost. Initially, I was in favor of charity services. When I understood the misuse of provided facilities, I changed my view and started activities using the Participative Rural Approach (PRA). Whatever activity you plan in the community, do involve community stakeholders. It may be small or big; people will realize its importance only when their contribution is involved. Perhaps you can plan 90-95% from the company side and 5-10% through community participation.

As per my understanding, the Health Department has enough budget to address Malaria and Dengue issues. You can collaborate with the Health Department to implement the activity. Alternatively, as suggested by Vibhakar Ramtirthkar, you can also associate with like-minded associations.

Please keep in mind that the community is very sensitive. If anything goes wrong, the community will never tolerate you. My suggestion is to create the asset and hand it over to the PHC for maintenance or create assets and train the Lab technician of the PHC to perform necessary tests. Avoid entering for complete maintenance, which may invite problems. Also, you can work on preventive measures for the same. If you need further clarification, call me at [Phone Number Removed For Privacy Reasons].

Thank you.

It is okay to charge a nominal rate (actuals) to patients who can afford it. There has to be discretion towards the less fortunate and provide them with free services. Only then does corporate social responsibility (CSR) have true meaning.