AP private hospitals call off strike after govt promises Rs 1,000 crore
Andhra Pradesh Private Hospitals Resume Services Following Government Dues Pledge
Vijayawada: Healthcare services under the Dr. NTR Vaidya Seva scheme in Andhra Pradesh are set to resume after a six-day suspension, following a strike by private network hospitals demanding the release of pending dues. The strike, which began earlier this week, had disrupted services at over 500 hospitals across the state.
Medical Dialogues had previously reported that, following pending dues of Rs 3,000 crore, private hospitals under the Andhra Pradesh Speciality Hospital Association (ASHA) have announced that they will suspend free healthcare services for poor patients under the Dr NTR Vaidya Seva Trust scheme starting Wednesday. The payments, meant for cashless treatment services under the scheme, have not been released by the state government despite previous assurances.
Also Read:Private hospitals in Andhra Pradesh suspend free services over Rs 3,000 crore unpaid dues
Andhra Pradesh Speciality Hospitals Association (ASHA) vice president S.V.L. Narayana Rao said that, unlike previous discussions, the government explicitly mentioned in the official Minutes of Meeting that ₹ 1,000 crore would be paid to private hospitals within 10 days. ASHA members had participated in a virtual meeting with health officials on Monday, April 6.
Usually, fund releases under the scheme are shared between private and government hospitals. However, the ₹1,000 crore this time will be used solely to clear dues of around 600 private hospitals. Even after this payment, another ₹1,000 crore in dues will remain. According to ASHA, of the total ₹3,000 crore in pending dues, Rs 2,000 crore is owed to private hospitals, while the remaining ₹1,000 crore pertains to government hospitals.
In addition to the initial payment, the government has also agreed to provide ₹150–170 crore monthly to cover ongoing operational expenses.
The monthly expenses incurred by all 800 network hospitals in the State under the scheme touch ₹350 crore, 60% of which comes from private hospitals. “Despite the monthly payment of ₹150-₹170 crore, ₹40-₹50 crore will keep getting added to the outstanding dues,” Dr. Narayana Rao said, stating that it is, however, a good deal, reports the Hindu.
With the assurance in place, private hospitals are expected to resume all services from April 8.
Also Read:AP Govt releases Rs 250 crore pending dues to private hospitals
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