Health, Medical and Family Welfare Minister Satya Kumar Yadav on Monday directed officials to complete, within two weeks, an audit of the demand and supply of Liquid Medical Oxygen (LMO), identify deficiencies, and initiate corrective measures.

Reviewing the functioning of the Health department at the APIIC Towers in Mangalagiri, the Minister said the corrective measures should be implemented on a pilot basis for two months in eight government hospitals, after which a detailed report should be submitted by October 15. The exercise aims to identify the gap between the demand and supply of LMO and bring down oxygen procurement costs to pre-COVID levels as far as possible.

The review focused on Pressure Swing Adsorption (PSA) oxygen plants, established at a cost of nearly ₹105 crore during the COVID-19 pandemic to ensure uninterrupted oxygen supply in government hospitals, many of which are now lying unused.

During the peak pandemic years of 2020-21 and 2021-22, teaching hospitals procured LMO worth ₹95.43 crore. Before the pandemic, between 2016 and 2020, expenditure on LMO stood at ₹60.51 crore. However, in the four-year post-pandemic period from 2022 to 2026, LMO procurement expenditure rose sharply to ₹180.82 crore.

While acknowledging that part of the increase was attributable to the establishment of new teaching hospitals, expansion of healthcare facilities and enhanced bed capacity, the Minister observed that there appeared to be a significant mismatch between the oxygen demand projected by officials and the actual supply. He directed officials to conduct a detailed assessment and explore measures to reduce procurement costs.

Mr. Yadav said another review meeting would be held after the committee submitted its report on LMO supply and utilisation. Based on its findings, the Health department would issue guidelines to ensure that oxygen procurement was aligned strictly with actual demand.

Health Secretary G. Veerapandian, Director of Medical Education A. Vishnuvardhan, Additional Director of Medical Education Radhika Reddy, DME Joint Director Ganapathi Rao, Directorate of Secondary Health Joint Commissioner Sujatha, and other senior officials attended the meeting.

Published - August 03, 2026 09:04 pm IST