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Home Finance

Private Hospitals in J&K Threaten Service Suspension Amid Payment Delays

by Editor Desk
August 24, 2024
in Finance
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Private Hospitals in J&K Threaten Service Suspension Amid Payment Delays
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SRINAGAR, Aug 24: The Jammu and Kashmir Empanelled Hospitals and Dialysis Centres Association has issued a stark warning: they may cease services for patients under the AB-PMJAY SEHAT Scheme starting August 31, 2024, due to prolonged payment delays from the State Health Agency (SHA).

Key points of the developing situation:

  1. Payments totaling approximately Rs 300 crore have been pending since March 15, 2024.
  2. The delay stems from an ongoing legal dispute between the government and insurance provider IFFCO Tokio.
  3. Despite SHA J&K orders, IFFCO Tokio has not released payments for wrongfully rejected and deducted cases.
  4. The association cites severe financial strain, with suppliers refusing to extend further credit.
  5. If unresolved, hospitals will only offer services on a cash basis after August 31.

The association spokesperson emphasized their commitment to the Ayushman Bharat Scheme but stressed the unsustainability of the current situation. “We regret any inconvenience and appeal to the authorities for an immediate resolution,” the spokesperson stated.

This issue has been brewing for months. In April, a meeting with the CEO of Ayushman Bharat promised a resolution by early May, which did not materialize. On May 31, the Secretary of Health assured private healthcare providers that their funds were secure. Most recently, on August 13, the Srinagar branch met with the Deputy Commissioner to request emergency funds.

The potential suspension of services could significantly impact healthcare access for many J&K residents, highlighting the urgent need for a resolution to this financial impasse.

Editor Desk

Editor Desk

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