EMRI model - Indiagovernance.gov.in
EMRI model - Indiagovernance.gov.in EMRI model - Indiagovernance.gov.in
Study of Emergency Response Service (EMRI Scheme)financial and operational mess? What are the chances of it being able tofind such a sponsor?2. If EMRI is able to survive due to a bail out by corporate sponsors and isreinforced as a separate private entity would the government not lose theability to use this institution further to develop ERS across the country asit has done now? In that case EMRI would have to enter the competitivebidding process, and then it would have to cut costs and cannot directinnovation in the way it is doing now. Such innovation may have moreroom if it were a public sector entity.3. If further selection and renewals of contract are through the tenderingprocess, those awarded the contract through tendering may not performas well. For it takes investment to build up intellectual capital and thiswould not be provided for. This may over time prove EMRI superior by amore open process - but still time and focus would be lost and therewould be many failures of others and many restrictions on EMRIoperations which they may not beii. Option 2.0: The government provides the funds to bail it out: (this could be doneon its own or it could use development partner contribution)Questions:1. Would government not have to strengthen governance by increasedpublic participation and would it also not have to rationalise leadershipcosts- this would make it more like an autonomous public sector entity. Itmay be impossible for government to take on the current liabilities and thefuture leadership costs of EMRI (a non recurrent 40 crores and arecurrent 36 crores annually) without such a restructuring of governance.2. If the government does take a greater role in governance, would it notface the risk of finding much of the leadership of EMRI anyway leaving it.Government could then get stuck with a public sector undertaking that itcannot handle and that it cannot abandon.3. Would government be able to negotiate a planned transfer of technologyand skills to an agreed upon and negotiated more sustainable institutionalstructure? This would critically depend on whether it is able to take thecurrent leadership along in this transformation of the EMRI. This alsomeans protecting the leadership costs. Government may take on itself thecommitment to help EMRI find funding sources/contributions for suchcosts or make it available from its own funds for a three year period inreturn for such a planned transfer of technology and skills and somecontinued professional support thereafter.V. Recommendations:(a) Governance and Management:1. Even as the appraisal of EMRI was being undertaken, the earlier chief promoter of EMRINational Health Systems Resource Centre (NHSRC)37
Study of Emergency Response Service (EMRI Scheme)M/s Satyam Computers, is under investigation for serious frauds. The Satyam crisis hasaffected EMRI’s executive board structure, seriously affecting their corporategovernance, credit worthiness and liquidity. Thus there is an urgent need to bringconsiderable transparency into board operations at EMRI Hyderabad. The mostimportant reform in this direction we suggest that at the national level, EMRI boardshould be headed by a chairperson nominated by the Secretary, MOHFW or MissionDirector, NRHM. Two state mission directors or principal secretaries by rotation takenfrom the states with over Rs.50 crores funding to the EMRI be also taken on the board.Commenting on this recommendation, EMRI has stated in response, “As EMRI society isa private entity, its board would be chaired by nominee of the new donor. Thus, thereport may recommend nomination of GoI representative on EMRI board and not it’sChairman. Further, there can be one more nominee from one of the large states on arotation basis. We also suggest having State Advisory Boards comprising of StateGovernment nominees, EMRI, Prominent Doctors and Professionals”.2. The legal entity of the EMRI registered society be separated from the boardoperationalising ERS by creating a sector 25 company called the EMRI- ERS company,and the board described earlier be the company board. A total of 13 board memberswould be agreed upon by discussions between the current CEO of the company (orcurrent EMRI board members), the NRHM represented by the secretary and thechairperson of the board, and the main states which have ongoing MOUs with EMRI.The current five members on the board may continue for its first term or may bechanged- depending on the discussions.3. To enable transition, the registered society could be allowed to nominate two morenames on the board while other board members would be decided by consensusbetween the chair person of the board and its member secretary who is the current CEOof this company. Once the sector 25 company is formed and the board holds its firstmeeting the board can decide and renegotiate the relationship between the board andthe registered society. If agreed upon by both, this relationship can be ended. The needand way to reconstitute the registered society is not gone into here as it is a private bodywhich may take it own decision in this regard. However it would seek clarity andrenegotiation of the relationship between the society and the board.4. The central government would also provide this newly formed company with the funds tobecome solvent again, clear its dues and function as a management contract toadminister and guide the formation of ERS in all the states.5. If the national board is government led, then the state level sector 25 companies maynot be needed at all and a state specific steering and monitoring committee withspecified powers may be adequate. If on the other hand the government chooses toprefer separate state bodies, then at state levels there could also be sector 25companies who are independent legal entities with the state secretary as chairpersonand the board members nominated by the national board in consultation with the stateNational Health Systems Resource Centre (NHSRC)38
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Study of Emergency Response Service (<strong>EMRI</strong> Scheme)M/s Satyam Computers, is under <strong>in</strong>vestigation for serious frauds. The Satyam crisis hasaffected <strong>EMRI</strong>’s executive board structure, seriously affect<strong>in</strong>g their corporate<strong>gov</strong>ernance, credit worth<strong>in</strong>ess and liquidity. Thus there is an urgent need to br<strong>in</strong>gconsiderable transparency <strong>in</strong>to board operations at <strong>EMRI</strong> Hyderabad. The mostimportant reform <strong>in</strong> this direction we suggest that at the national level, <strong>EMRI</strong> boardshould be headed by a chairperson nom<strong>in</strong>ated by the Secretary, MOHFW or MissionDirector, NRHM. Two state mission directors or pr<strong>in</strong>cipal secretaries by rotation takenfrom the states with over Rs.50 crores fund<strong>in</strong>g to the <strong>EMRI</strong> be also taken on the board.Comment<strong>in</strong>g on this recommendation, <strong>EMRI</strong> has stated <strong>in</strong> response, “As <strong>EMRI</strong> society isa private entity, its board would be chaired by nom<strong>in</strong>ee of the new donor. Thus, thereport may recommend nom<strong>in</strong>ation of GoI representative on <strong>EMRI</strong> board and not it’sChairman. Further, there can be one more nom<strong>in</strong>ee from one of the large states on arotation basis. We also suggest hav<strong>in</strong>g State Advisory Boards compris<strong>in</strong>g of StateGovernment nom<strong>in</strong>ees, <strong>EMRI</strong>, Prom<strong>in</strong>ent Doctors and Professionals”.2. The legal entity of the <strong>EMRI</strong> registered society be separated from the boardoperationalis<strong>in</strong>g ERS by creat<strong>in</strong>g a sector 25 company called the <strong>EMRI</strong>- ERS company,and the board described earlier be the company board. A total of 13 board memberswould be agreed upon by discussions between the current CEO of the company (orcurrent <strong>EMRI</strong> board members), the NRHM represented by the secretary and thechairperson of the board, and the ma<strong>in</strong> states which have ongo<strong>in</strong>g MOUs with <strong>EMRI</strong>.The current five members on the board may cont<strong>in</strong>ue for its first term or may bechanged- depend<strong>in</strong>g on the discussions.3. To enable transition, the registered society could be allowed to nom<strong>in</strong>ate two morenames on the board while other board members would be decided by consensusbetween the chair person of the board and its member secretary who is the current CEOof this company. Once the sector 25 company is formed and the board holds its firstmeet<strong>in</strong>g the board can decide and renegotiate the relationship between the board andthe registered society. If agreed upon by both, this relationship can be ended. The needand way to reconstitute the registered society is not gone <strong>in</strong>to here as it is a private bodywhich may take it own decision <strong>in</strong> this regard. However it would seek clarity andrenegotiation of the relationship between the society and the board.4. The central <strong>gov</strong>ernment would also provide this newly formed company with the funds tobecome solvent aga<strong>in</strong>, clear its dues and function as a management contract toadm<strong>in</strong>ister and guide the formation of ERS <strong>in</strong> all the states.5. If the national board is <strong>gov</strong>ernment led, then the state level sector 25 companies maynot be needed at all and a state specific steer<strong>in</strong>g and monitor<strong>in</strong>g committee withspecified powers may be adequate. If on the other hand the <strong>gov</strong>ernment chooses toprefer separate state bodies, then at state levels there could also be sector 25companies who are <strong>in</strong>dependent legal entities with the state secretary as chairpersonand the board members nom<strong>in</strong>ated by the national board <strong>in</strong> consultation with the stateNational Health Systems Resource Centre (NHSRC)38
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