AP releases Rs 501 crore to private hospitals under NTR Vaidya Seva Scheme
Vijayawada- The Andhra Pradesh government has released ₹501 crore to private hospitals empanelled under the NTR Vaidya Seva Trust to clear their pending dues in the state.
In addition, the government has approved the disbursement of ₹1,000 crore through the Tripartite Bill Discounting Agreement (TBDA) mechanism.
According to Chakradhar Babu, the Officer-in-Charge of the NTR Vaidya Seva Trust and Director of Secondary Health, the government has decided to clear outstanding dues amounting to approximately ₹1,000 crore owed to private hospitals under a tripartite bill discounting agreement.
He stated that this agreement involves the Andhra Pradesh Power Finance Corporation, the NTR Vaidya Seva Trust, and the management of private hospitals, and that payments commenced last Monday.
According to KVN Chakradhar Babu, In-charge CEO, a total of 278 hospitals have received payments amounting to ₹501 crore so far. Out of 873 eligible hospitals, 531 applied to receive their outstanding dues through the bill discounting mechanism. The verification of 336 applications has been completed, and the further process is underway, reports TOI.
The payments are being released in accordance with the commitment to clear the government's outstanding dues, thereby providing financial relief to hospitals and strengthening healthcare delivery across the state.
Earlier this month, Medical Dialogues had reported that the 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.
In this regard, ASHA, in a statement, 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.
