CM Naidu sanctions Rs 500 crore for NTR Vaidya Seva Scheme

Written by Medical Dialogues Team Published On 2025-04-10T11:52:12+05:30 | Updated On 10 April 2025 11:52 AM IST

Vijayawada: In a significant development, private hospitals in Andhra Pradesh, under the Association of Healthcare Providers of Andhra Pradesh, resumed healthcare services under the NTR Vaidya Seva scheme on Tuesday. This follows a directive from Chief Minister N. Chandrababu Naidu, who instructed the immediate release of Rs 500 crore to settle outstanding dues.

The suspension of services began on April 7, when private hospitals decided to stop providing care under the NTR Vaidya Seva and the Employees Health Scheme due to outstanding payments of up to Rs 3,500 crore.

Also Read: AP Private Hospitals to Suspend Cashless Services under Vaidya Seva

Medical Dialogues had previously reported that the Andhra Pradesh Speciality Hospital Association (APSHA) has stepped up its efforts to bring attention to the pending dues of ₹3,500 crore owed by the State government under the Dr. NTR Vaidya Seva scheme. Members of the association, which includes numerous hospitals in the state, have begun meeting with people’s representatives to seek support for resolving the issue.

In response to the crisis, Chief Minister Naidu called for an emergency meeting with the executive body of ASHA late on Monday night. During the meeting, CM Naidu explained the challenges the state government faced in managing available resources and balancing the healthcare needs of the public.

According to Deccan Chronicle, however, understanding the crucial role played by the hospitals and healthcare providers, the CM gave his approval for the release of Rs 500 crore immediately and assured to clear the remaining dues with top priority.

Also Read: AP Medical Professionals demand Fair pay, Cadre Allocation in NTR Vaidya seva Trust

The Chief Minister also assured that a meeting would be arranged with the ASHA executive body to address other concerns in detail. Health Special Chief Secretary M.T. Krishna Babu met with the ASHA executive body and promised to make efforts to secure the release of the remaining funds. He mentioned that a follow-up meeting will be scheduled on April 10 with Health Minister Satya Kumar Yadav, where the key topics of discussion will include payment schedules, package revisions, wage enhancements, and other long-term concerns raised by the healthcare providers.

Following the assurance of immediate payments and a commitment to resolve the remaining concerns, the ASHA executive body agreed to resume cashless services under the NTR Vaidya Seva scheme across all private hospitals in the state starting Tuesday.

Dr NTR Vaidyaseva Trustprivate hospitalsN Chandrababu Naiduandhra pradesh government

Medical Dialogues Team