Vijayawada: A confrontation is brewing between the state government and private hospitals, with the Andhra Pradesh Specialty Hospitals Association (ASHA) issuing notice of suspension of services under the NTR Vaidya Seva scheme from April 1 over pending dues of Rs 3,000 crore.
The warning comes as the State prepares to roll out Universal Health Coverage (UHC) from April 1, transitioning from the existing government-funded reimbursement model under Aarogyasri/NTR Vaidya Seva to an insurance-based payment system.
Private hospitals have objected to the timing of the shift, arguing that the government has not cleared outstanding dues, estimated to have risen from Rs 2,500 crore to Rs 3,000 crore in the past four months, nor addressed long-pending concerns over package rates.
Hospital representatives said the current service packages, fixed in 2017, are no longer viable given rising operational costs. They also cited a High Court directive mandating revision of these rates, which they say has not been implemented. "We are not opposing Universal Health Coverage in principle, but it cannot be implemented without clearing dues and revising outdated package rates," said Dr Vijay Kumar, president of the Private Hospitals Association, demanding immediate settlement of arrears and a clear payment roadmap.
Hospitals also questioned the adequacy of the proposed UHC allocation, pointing out that a budget of around Rs 4,000 crore would be insufficient when pending dues alone stand at Rs 3,000 crore.
The standoff has intensified concerns within the healthcare sector, with smaller hospitals warning of potential closures due to mounting financial stress. Hospital managements said patient inflow under NTR Vaidya Seva has increased significantly, but delayed payments have pushed institutions into losses.
They further expressed apprehension over the transition to an insurance model, questioning who would take responsibility for clearing existing arrears once payments are routed through insurers.
Hospital associations have demanded that the government hold consultations, finalise a mutually agreed implementation roadmap, revise package rates, and ensure adequate budgetary support before rolling out UHC. Warning of escalation, private hospitals said they are prepared to launch protests if the scheme is implemented without addressing their concerns.