Varanasi Hospital sealed over alleged Ayushman Bharat Fraud

Varanasi: In a swift crackdown on alleged fraud under the Ayushman Bharat scheme, Uttar Pradesh Finance and Parliamentary Affairs Minister Suresh Khanna on Saturday ordered the immediate closure of an unregistered hospital in Varanasi and directed that an FIR be lodged against its operator.

The action came after a public grievance was raised during a hearing held at the Prime Minister’s parliamentary constituency office in Jawahar Nagar, where Minister Khanna was present to lead International Yoga Day events.

According to the news reports, the issue came to light when Surendra Banwasi, a local resident, filed a complaint alleging that Asha Hospital, located in the Nayepur area under the Baragaon police station, had claimed reimbursement under the Ayushman Bharat health insurance scheme for treating his father while also charging him for the same services. Banwasi stated that the hospital later refunded the money.

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The minister promptly responded by instructing the Chief Medical Officer and local authorities to conduct a thorough investigation and implement firm action.

CMO Dr. Sandeep Choudhary confirmed that medical officer Dr. Sher Muhammad was appointed to investigate the matter. During verification, it was discovered that Asha Hospital was operating without the necessary registration.

Following this finding, Dr. Muhammad, along with officers from the Baragaon police station, reached the premises and sealed the hospital on the same day. Speaking to TOI, Dr Choudhary said, "The in-charge minister took the complaint seriously and instructed for strict action without delay. The hospital was found unregistered, and action was taken on the same day."

The case has spotlighted growing concerns over misuse of the Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (PM-JAY), the flagship health insurance scheme aimed at providing cashless treatment to economically vulnerable populations.

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Medical Dialogues had previously reported that a major scam involving fraudulent medical insurance claims worth Rs 10 crore under the Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (PMJAY) and Mukhyamantri Jan Arogya schemes has been uncovered at multiple private hospitals across Uttar Pradesh. An FIR was registered at Hazratganj police station after irregularities were flagged during a routine audit.