Telangana govt says Rs 1,779 crore dues cleared, urges hospitals to continue services

Hyderabad: With the private network hospitals set to go on strike from Tuesday midnight and stop the Aarogyasri services in Telangana, the government has appealed to them to continue the services for the BPL section, as Rs 1,779 crores have been paid in terms of claims.

Uday Kumar, CEO of the Rajiv Aarogyasri Health Care Trust, made a public appeal to ensure continued healthcare services for the State’s BPL (Below Poverty Line) families.

The government’s actions, particularly since the new administration was formed on December 7, 2023, demonstrate a steadfast commitment to addressing the concerns of both patients and providers, said Uday Kumar.

The details given by him are:

Enhanced health coverage: The new government has significantly expanded the scheme’s reach by doubling the health coverage from Rs 5 lakh to Rs 10 lakh per family per year. This allows for access to more expensive and complex medical procedures.

Expansion of covered procedures: Reflecting its commitment to patient care, the government has added over 163 new high-cost procedures to the scheme, ensuring a wider range of treatments are available to beneficiaries.

Revision of package rates: Acknowledging the financial pressures faced by hospitals, the government has revised the package rates for 1,375 procedures. This action represents an additional budget commitment of Rs 487.29 crore to the scheme.

Timely settlement of dues: The government has prioritised clearing outstanding payments, leading to a record-high average monthly payout of Rs 95 crore in the fiscal year 2024–25, the highest ever under the scheme.

Increased monthly payments for arrears: To address all pending claims, the government has initiated a phase-wise monthly payment of Rs 75 crore for the period from December 2023 to December 2024.

This is a substantial increase from the average of Rs 57 crore released monthly between 2014 and November 2023. Based on representation from private hospitals, this payment has been further enhanced to Rs 100 crore per month. The total claim payments cleared in the fiscal year amounted to Rs 1,779 crore, demonstrating tangible action to strengthen trust with partner hospitals.

Strike call

The Rajiv Aarogyasri scheme, which provides health security to over 99 lakh BPL families, is heavily dependent on the collaboration of empanelled private hospitals.

However, this partnership has been strained by the persistent issue of delayed payments.

The Telangana Aarogyasri Network Hospitals Association (TANHA), representing these hospitals, has repeatedly voiced its concerns over mounting dues, which have reportedly reached as high as Rs 1,400 crore.

Need for a consistent and predictable payment schedule

TANHA’s primary demands include the clearance of these pending dues, a consistent and predictable payment schedule, and a revision of the package rates to keep up with the rising costs of medical services. They have also called for the establishment of a formal grievance redressal mechanism and a redrafting of the Memorandum of Understanding (MoU) to ensure timely payments.

This is not the first time the association has threatened to suspend services.

An indefinite strike was called in January of this year over similar demands, which was later called off after the government provided assurances and released some of the pending funds. The recent threat to suspend services from September 16 underscores the ongoing financial stress faced by the hospitals and their demand for a permanent solution rather than temporary relief.

A call to continue serving

The government has requested all empanelled hospitals to continue providing quality healthcare services under the Rajiv Aarogyasri scheme.

The administration is firmly committed to addressing hospital concerns, including ensuring timely payments and clearing all dues, to ensure that no poor person in Telangana is ever denied healthcare for lack of money. The ongoing support and collaboration of private hospitals are deemed critical for the continued success of this flagship health assurance program and the well-being of millions who depend on it.