Andhra Pradesh private hospitals to suspend Aarogyasri Services from October 10

Medical Dialogues had reported that patients in Andhra Pradesh might face difficulties accessing free treatment under the Dr NTR Vaidya Seva scheme, as the Andhra Pradesh Speciality Hospitals Association (ASHA) announced that private hospitals associated with it will cease providing services under the scheme from October 10, except for some emergency services.

Also read- Rs 2,700 crore pending dues: AP hospitals to suspend NTR Vaidya Seva services

The private hospitals associated with ASHA stated they are unable to continue providing treatment to the patients because the State government has not cleared dues amounting to approximately Rs 2,700 crore. According to ASHA president Dr K. Vijay Kumar, hospitals have provided treatment worth over Rs 5,300 crore since June 2024, but the government has so far cleared only Rs 3,800 crore. The remaining bills, including those carried forward from the previous government, are still pending. He stated that bills that should be cleared within 45 days are now taking more than 400 days. As a result, hospitals cannot run blood tests, scans, and other pre-surgery procedures free of cost until these dues are paid.

Although Health Minister Satya Kumar Yadav previously stated in the Assembly that Rs 670 crore has been uploaded on the Comprehensive Financial Management System, the association said that the amount has not been released yet, which left hospitals in financial stress. 

The association said private hospitals have been offering free treatment despite heavy financial losses, but with dues increasing every month, they had no choice but to suspend Aarogyasri services across the state. Despite raising their concerns several times with Vaidya Seva Trust higher officials, district collectors, ministers, MLAs, and MPs, they said no action has been taken.

In a statement issued in this regard, the association said, "Private hospitals continued to provide free treatment services despite facing significant financial burdens due to pending dues. However, the mounting dues with each passing month have pushed hospitals into a difficult situation, and with no alternative, we have decided to suspend Aarogyasri services across the state."

"Though the health minister highlighted the woes of private hospitals on the floor of the legislative assembly, no concrete steps have been taken to resolve the issue. We have submitted multiple representations to higher officials of Vaidya Seva Trust, but there has been no resolution. Over the last week, representations have been given to district collectors, ministers, MLAs, and MPs regarding the issues faced by private hospitals in the state," the private hospitals union told TOI. 

In response, the Health Minister appealed to the hospitals not to halt services and to wait until discussions with the CM are complete.

Speaking on this regard to TOI, the health minister said, "The NDA coalition govt made payments amounting to Rs 3,800 crore towards the Aarogyasri scheme to private hospitals, while the previous YSRCP govt left behind Rs 2,500 crore in dues to the private hospitals. Bills amounting to Rs 670 crore have been uploaded in the CFMS, while another Rs 2,000 crore worth of bills are being scrutinised by officials," he said, adding that Rs 250 crore was released recently towards the pending bills.

He further added, "The government understands that the private hospitals, withstanding many difficulties and pressures, are rendering healthcare services for free under the Aarogyasri scheme. And the hospitals have to understand that the current situation is due to the pending bills left behind by the previous government."

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