By Sumit Jha,Sumit Jhapublishe
Copyright thesouthfirst
As talks fail, Telangana private hospitals to suspend Aarogyasri services over pending dues
The Aarogyasri scheme, meant to provide cashless treatment of up to ₹10 lakh per family per year to Below Poverty Line households, is now at risk of severe disruption.
Synopsis: Over 330 private hospitals in Telangana empanelled under the state’s Aarogyasri scheme will begin an indefinite strike from midnight on September 16, suspending services under Aarogyasri and other government health schemes, citing unpaid dues of around ₹1,400 crore. The strike threatens disruption of cashless treatment for more than 99 lakh Below Poverty Line families across the state.
The Telangana Aarogyasri Network Hospitals Association (TANHA) are moving ahead with an indefinite strike from midnight on Tuesday, September 16, bringing healthcare services under government schemes to a standstill across the state. The strike covers more than 330 private network hospitals, which play a crucial role in Telangana’s public health system.
“Despite our best efforts, there is no change, so from midnight we will start the strike. Financial concerns are the main reason, but there are also other reasons, which they have given a presentation to the health minister in person. Chief minister should be involved, and issues should be resolved. Their aim is not to create trouble for patients, but are doing it to resolve their troubles,” said TANHA President Rakesh Vaddiraju on Tuesday.
The strike follows the government’s failure to clear pending payments worth about ₹1,400 crore despite repeated assurances. Dr Rakesh Vaddiraju, President of TANHA, stressed that the hospitals provide services under multiple government health schemes, including Aarogyasri, the Employees Health Scheme (EHS), and the Government Health Scheme (GHS) for MLAs and their dependants.
“For nearly two years now, no payments have been released, creating an unprecedented financial crisis,” Dr Rakesh said. He explained that the operating costs of these hospitals are around ₹150 crore a month—₹125 crore for hospital operations and ₹25 crore for salaries and expenses.
The Aarogyasri scheme, meant to provide cashless treatment of up to ₹10 lakh per family per year to Below Poverty Line (BPL) households, is now at risk of severe disruption. This is the second major strike in Telangana this year, after the strike by private professional and degree colleges.
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Government response and counterclaims
Health Minister Damodar Rajanarsimha defended the government’s position, saying that negotiations with the hospital federation had been underway for a month. “We said we would give ₹100 crore per month. As promised, we released ₹100 crore yesterday,” the minister said, alleging that “some people are conspiring with political malice” and pointing out that not all hospitals are part of the strike.
Rajiv Aarogyasri Health Care Trust CEO Uday Kumar issued a detailed statement, appealing to all empanelled private hospitals to continue their role under the Rajiv Aarogyasri scheme, which he described as “the backbone of health security for over 99 lakh BPL families in the state.”
Kumar highlighted the government’s reforms since the new administration took office on 7 December 2023. “After the formation of the new government, health coverage under Rajiv Aarogyasri was doubled from ₹5 lakh to ₹10 lakh per family per year, while over 163 new high-cost procedures were added, reflecting a steadfast commitment to both patients and providers,” he said.
Responding to hospital demands, the government revised package rates for 1,375 procedures, adding a budget commitment of ₹487.29 crore to the scheme. Kumar said the government had “prioritised timely settlement of dues, leading to a record-high average monthly payout of ₹95 crore in FY 2024-25, the highest ever under the scheme.”
He shared payment figures, noting that total claim payments cleared amounted to ₹1,779 crore during this period. Phase-wise monthly payments of ₹75 crore were first put in place for December 2023 to December 2024—a sharp rise compared to the average of ₹57 crore per month released from 2014 to November 2023. “However, based upon representation from private network hospitals, the payment to private hospitals was enhanced to ₹100 crore by the government,” Kumar said.
The CEO made a direct appeal to hospitals: “The government sincerely requests all empanelled hospitals to continue providing quality healthcare services under Rajiv Aarogyasri, reassured by these significantly enhanced and regularised payments.” He stressed the state’s commitment to “ensuring timely payments and clearing all dues—so that no poor person in Telangana is ever denied healthcare for want of money.”
Kumar added: “The ongoing support and collaboration of private hospitals are critical for the continued success of this flagship health assurance programme, and the well-being of millions who depend on it.”
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Unfulfilled promise
TANHA’s leadership voiced frustration over what they described as a continuing pattern of unfulfilled commitments. Despite extensive engagement with government officials over the past 20 days, including meetings with the Health Minister and the Aarogyasri Health Care Trust CEO, the association alleged that both agencies had failed to keep their promises.
“For nine years, TANHA has been raising the same demands without even changing a single line, but successive governments have ignored them,” Dr Rakesh said. He added that while their aim is not to create trouble for patients, the association was compelled to take this step to address mounting financial pressures.
“Request all the beneficiaries and the media to understand our constraints and support our legitimate demands. Any inconvenience caused is highly regretted,” Dr Rakesh said.
“We once again appeal to all concerned, including our state Chief Minister, Health Minister, and others, to consider our justified concerns and resolve our concerns permanently.”
The indefinite strike threatens to create a serious access crisis for thousands of Telangana residents who depend on government health schemes. Aarogyasri cardholders, mostly from economically disadvantaged families and covering more than 99 lakh BPL families across the state, may be left with no option but to seek treatment at unaffordable private rates or at already overburdened government facilities.
The suspension of services comes at a critical time, when the state’s healthcare infrastructure is vital for ensuring accessible medical care to the most vulnerable populations.
