Rs 1,067 crore in pending dues disrupt free diagnostic, dialysis services in Maharashtra

Mumbai: Free diagnostic tests at primary health centres, dialysis services and clinics operating under Maharashtra's Aapla Dawakhana scheme were disrupted after HLL Lifecare Limited suspended operations over unpaid government dues exceeding Rs 1,067 crore. The public sector company is set to resume services following assurances from the state government that outstanding payments will be cleared in phases.

The disruption began on November 1, after the company cited mounting financial pressure that had affected its ability to run the healthcare programmes. In a letter to state health authorities in October, HLL Lifecare reported outstanding payments of Rs 1,067.27 crore accumulated over two years. Of this, Rs 877.15 crore related to laboratory diagnostic services, Rs 126.27 crore to free dialysis facilities and Rs 63.83 crore to Aapla Dawakhana clinics. 

The company said the payment delays had affected its ability to procure essential testing kits, reagents and other consumables required to operate 137 laboratories. It also cited difficulties in meeting the monthly salaries of more than 4,000 healthcare workers.

Explaining the financial strain, HLL Lifecare said, “An acute working capital crunch has made it impossible to meet baseline operational expenditures.” It had warned that diagnostic testing at PHCs, along with dialysis and clinic services, would have to stop unless the government released an interim payment of at least Rs 200 crore. The company, however, had indicated that it would try to maintain services at district and rural hospitals for a limited period using available resources, Hindustan Times reported. 

The National Health Mission (NHM) acknowledged that bills worth Rs 137 crore for services at district and rural hospitals had been sanctioned but said treasury-related constraints were preventing immediate disbursement. It maintained that the remaining payments would be released as and when funds became available.

The payment dispute also led to a disagreement over the company's decision to suspend services. In a communication issued on October 31, NHM reminded HLL Lifecare of its contractual obligations under the three public-private partnership agreements. The mission argued that the company could not discontinue operations unilaterally and was required to follow the prescribed notice period and obtain mutual consent.

NHM also warned that any interruption could invite legal action and a three-year blacklisting of the service provider. The matter drew the attention of legislators, who urged the state government to intervene after receiving complaints from residents about the possible loss of diagnostic, dialysis and primary healthcare services.

Following discussions with the company, the NHM Commissioner and Mission Director said operations had resumed after assurances were given. He maintained that payment settlements and the contractual responsibility to continue services were separate matters, adding that the department would work to prevent another disruption.

The episode has brought attention to the dependence of essential public healthcare programmes on timely payments to service providers. With laboratory testing, dialysis and neighbourhood clinics serving patients who rely on free or subsidised care, delays in clearing government bills can have an immediate impact on access to treatment.