New Delhi, Aug. 6 -- BJP MP Raghav Chadha on Thursday raised the issue of alleged "referral commissions" and "cut money" arrangements between some doctors and diagnostic centres, alleging that the practice has evolved into a "parallel incentive economy" that inflates patients' medical bills and encourages unnecessary diagnostic tests.

Speaking during a discussion in the Rajya Sabha, Chadha alleged that the practice, though "informal", has become an entrenched system in parts of the healthcare sector.

"I am talking about the 'referral incentive' and 'cut money arrangement' going on between some doctors and certain diagnostic centers, which has now become an informal arrangement. Not to treat you, but just to refer you, Rs 3,000 is put in...