Tirupati: Aarogyasri services come to halt over pending dues

Tirupati : A significant number of hospitals within the Aarogyasri network in Andhra Pradesh have announced a suspension of services starting Wednesday due to substantial arrears in reimbursements. This decision is expected to severely impact patients requiring various medical procedures.

There is uncertainty about whether all hospitals will comply with the Andhra Pradesh Speciality Hospital Association’s (ASHA) decision. However, some hospitals believe this is the opportune moment to pressure the government for the settlement of outstanding dues, especially before the potential transition to a new administration after June 4.

Reportedly, the network hospitals are owed approximately Rs.1500 crore by the state government, with arrears dating back to August 2023. The share for the erstwhile Chittoor district alone is around Rs 160 crore as there are about 48 network hospitals in the erstwhile Chittoor district itself.

Some doctors expressed frustration that previous demands for dues have resulted in only minimal fund releases. This time, they insist on the complete clearance of all pending bills before the new government takes office.

It was learnt that the government had promised to release Rs.500 crore on May 2, but only Rs.50 crore has been disbursed for Employees Health Scheme (EHS) bills.

A senior member of the Indian Medical Association highlighted the severe financial strain on hospitals due to the outstanding dues. Hospitals are struggling with maintenance costs, including payments for consumables and staff salaries. Despite the government collecting EHS contributions from employees’ salaries, the dues remain unsettled.

Hospital managements have previously been reluctant to voice their concerns for fear of retaliation. However, with the election counting date approaching, they have become more vocal, seeking to resolve the issue urgently.

ASHA has written to the Aarogyasri CEO with a copy to the Chief Electoral Officer about their decision to halt Aarogyasri and EHS services until the dues are cleared.

As a result, hospitals are not accepting new cases under Aarogyasri and EHS from Wednesday onwards. Emergency cases will still be treated, but elective procedures are being suspended, according to one doctor.

Dr Rajasekhar Reddy, district coordinator of Aarogyasri services, informed The Hans India that the government has announced the release of Rs 203 crore towards dues and that additional funds require approval from the Election Commission. He expressed hope that hospitals would not halt elective services as discussions between the government and the association are ongoing.