Rs 500 crore standoff: Private hospitals bring healthcare services to grinding halt

The private doctors of nearly 600 hospitals across Haryana, under the banner of the Indian Medical Association (IMA), have stopped accepting patients with Ayushman cards since August 7, alleging that the state government owes hospitals about Rs 500 crore. The standoff has left thousands of patients stranded and struggling for treatment.

What is the Ayushman Bharat scheme?

The Ayushman Bharat scheme, launched by the Central government, provides health insurance coverage of up to Rs 5 lakh per family per year. It is aimed at helping poor and vulnerable families access quality healthcare in both government institutions and empanelled private hospitals.

What prompted pvt doctors to halt cardholders’ treatment?

Private hospitals empanelled under the scheme, led by the IMA Haryana chapter, suspended treatment citing unpaid dues of nearly Rs 500 crore. The association has also demanded that the entire process be streamlined, particularly the new portal introduced in February 2024, which they claim has created additional hurdles. Hospitals complain of poor communication with authorities, illogical deductions and rejections of claims even after patients are discharged. They argue that rising operational costs coupled with delayed payments make it impossible to continue services. The IMA is also seeking a transparent system of fund disbursal and an annual allocation of at least Rs 2,500 crore to keep the scheme running smoothly.

Who is affected the most?

The worst affected are the lakhs of Ayushman beneficiaries in Haryana. Hundreds of surgeries, including cataract, orthopaedic and knee replacements, have been postponed. Patients have been left with no choice but to delay planned procedures, while emergency cases are crowding government hospitals. Already battling limited resources, government facilities say they are doing their best to prioritise emergencies, but the pressure is mounting.

What steps has the government taken so far?

The government has initiated partial disbursement of pending payments and urged private hospitals to resume treatment. The Ayushman Bharat Haryana Health Protection Authority (HHPA) has also issued show-cause notices to hospitals for denying treatment, a move that has further angered doctors and deepened the standoff.

What is the position of the IMA?

The IMA’s national body has fully backed the Haryana unit, with its president openly criticising the government for delaying payments. The association maintains that treatment will not resume until all dues are cleared and a fair, transparent system is put in place.

What lies ahead?

With neither side willing to back down, the deadlock looks set to continue until the outstanding dues are cleared. In the meantime, it is the patients who continue to bear the burden.