Private hospitals in Andhra Pradesh suspend free services over Rs 3,000 crore unpaid dues
Pending Payments Force Private Hospitals to Stop NTR Vaidya Seva Cashless Treatments
Vijayawada: 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.
According to the news reports, in a statement, ASHA stated that the government had promised to clear the dues by December 2025, but no payments have been made so far. The arrears have further increased over the past three months, making it financially unsustainable for hospitals to continue providing free services.
Also Read:Andhra Pradesh private hospitals to protest over Rs 2700 crore unpaid dues
Medical Dialogues had previously reported that as the indefinite strike by private hospitals in Andhra Pradesh enters its 13th day, the Andhra Pradesh Speciality Hospitals Association (ASHA) has announced a protest on October 23, at Dharna Chowk in Vijayawada. The protest is aimed at pressuring the state government into releasing Rs 2,700 crore in pending dues owed to private healthcare providers under the Dr. NTR Vaidya Seva scheme.
The association also criticised the proposed Universal Health Scheme (UHS), questioning how a new scheme could be implemented without first settling dues of the existing NTR Vaidya Seva scheme. ASHA highlighted that UHS package rates have not been finalised and expressed concern that using outdated 2017 rates would be impractical.
“The govt assured to clear all dues under a one-time settlement scheme, but there has been no discussion in that regard. Also, there is no amendment to various packages. There was no participation of ASHA in the designing of UHS," the private network hospitals said, reports TOI.
The association warned that in the absence of timely payments, the NTR Vaidya Seva scheme—which aims to provide better healthcare access for the poor—will struggle to achieve its objectives. The association’s state working group has appealed to the public to cooperate and support the protest undertaken by network hospitals across Andhra Pradesh.
The sudden suspension raises concerns over access to healthcare for thousands of beneficiaries who depend on the scheme for critical medical services. Meanwhile, there are indications that the state government may initiate discussions with hospital representatives to resolve the issue and restore services at the earliest, reports the South India Times.
Also Read:AP Govt releases Rs 250 crore pending dues to private hospitals
