Hospitals turn away Aarogyasri beneficiaries over unpaid dues

Hyderabad: A healthcare crisis is unfolding across Telangana as numerous hospitals, excluding those in the greater Hyderabad area, have stopped accepting Aarogyasri beneficiaries due to unpaid govt dues accumulating over nearly a year. Hospitals in towns such as Warangal, Karimnagar, and Sangareddy have posted notices at their gates, refusing to provide services to Aarogyasri cardholders, leaving patients in the lurch.

This move has left thousands of below poverty line (BPL) patients struggling to access essential medical care. On a daily basis, anywhere from ten to several hundred patients arrive at these hospitals with Aarogyasri cards, only to be turned away and forced to seek alternative solutions without govt support.

The Telangana Aarogyasri network hospitals association (TANHA) has stated that its members will continue to reject beneficiaries of Aarogyasri, employee health scheme (EHS), and journalists health scheme (JHS) until their demands are met, including immediate settlement of outstanding payments and revision of package rates.

"We are forced to withhold our services due to compelling financial circumstances," said V Rakesh, president of TANHA.

‘Hosp owners mired in debt'

"The govt owes 11 months of dues under Aarogyasri and 18 months under EHS for several hospitals. Many hospital owners are mired in debt and are even struggling to pay salaries to their staff."

According to TANHA, the crisis particularly affects smaller hospitals in district areas, where Aarogyasri patients allegedly constitute up to 85% of the total patient load, compared to just 10% in Hyderabad. "To meet Aarogyasri empanelment requirements, small and mid-sized hospitals invested heavily in infrastructure and personnel, essentially upgrading to corporate standards. Now we're facing severe financial strain," Rakesh explained.

The association has highlighted disparities in package rates between Hyderabad and district hospitals, with super-specialty hospitals allegedly seeing a 150-200% hike in their packages while districts having received only 5-20% increases. "There needs to be a more equitable distribution of resources," Rakesh emphasised.

TANHA's demands include the redrafting of the MoU with the Aarogyasri trust, revision of package rates, regular monthly payments, clearance of all pending dues, and the implementation of proper verification systems for BPL beneficiaries. The association claims that despite promises from authorities, including a commitment to release 100 crore during a January 9 meeting with the CEO of Aarogyasri Trust, the situation remains critical.

"We need an additional 100 crore monthly to sustain operations. Without this, we'll be back to square one next month," Rakesh said. He also expressed concerns about the viability of current rates, citing examples where procedure reimbursements don't even cover basic operational costs.

The crisis has already led to several hospitals either changing ownership, relocating, or shutting down completely. "It's unfortunate in any society to have healthcare providers suffer like this. Who will treat unwell hospitals that treat unwell patients?" Rakesh questioned. While hospitals continue to provide services to paying patients, the suspension of Aarogyasri services has created a significant healthcare access gap for the state's poorest residents.

Efforts made by TOI to contact the CEO of Aarogyasri Trust was not successful.