Private network hospitals operating under the Andhra Pradesh Speciality Hospital Association (ASHA) have announced the suspension of free healthcare services under the Dr NTR Vaidya Seva Trust scheme starting Wednesday. The decision comes after the state government allegedly failed to clear pending dues of nearly ₹3,000 crore owed to hospitals for providing cashless treatment to economically disadvantaged patients.
Hospitals Cite Massive Pending Dues
In a statement released on Tuesday, ASHA said the Andhra Pradesh government had earlier promised to clear the outstanding payments by December last year. However, the hospitals claim that no funds have been released so far.
Furthermore, the association noted that the arrears have continued to increase over the past three months, creating serious financial pressure on private hospitals participating in the scheme. According to the group, the prolonged delay in payments has made it increasingly difficult for hospitals to sustain services under the programme.
Concerns Over Proposed Universal Health Scheme
At the same time, the association also raised concerns about the government’s proposed Universal Health Scheme (UHS). ASHA questioned how the state could introduce a new healthcare programme without clearing the pending dues under the existing NTR Vaidya Seva scheme.
Additionally, the hospitals pointed out that UHS package rates have not yet been finalised, making implementation uncertain. They also warned that reusing the package rates fixed in 2017 would be impractical under current economic conditions.
Hospitals Seek Dialogue and Policy Clarity
ASHA further stated that the government had previously assured hospitals of clearing all dues through a one-time settlement mechanism. However, the association said no meaningful discussions have taken place on the proposal so far.
Moreover, hospital representatives highlighted that there has been no revision of treatment packages and no participation from ASHA in designing the Universal Health Scheme.
Impact on Healthcare Access for the Poor
As reported by TOI, the association warned that continued delays in payments could undermine the effectiveness of the NTR Vaidya Seva scheme, which was launched with the aim of providing high-quality corporate healthcare services to poor patients.
Meanwhile, the ASHA state working group has appealed to the public for cooperation and support during the ongoing agitation by network hospitals across Andhra Pradesh. According to the association, resolving the financial issues is essential to ensure continued access to affordable healthcare for vulnerable communities.