Hospitals write to PMO over pending dues under CGHS

New Delhi: An association representing some of the country’s top hospitals, including Max, Fortis, Medanta and BLK has approached the Prime Minister’s Office (PMO) demanding payment of dues with respect to treatment of Central Government Health Scheme (CGHS) and Ex-servicemen Contributory Health Scheme (ECHS) beneficiaries.

The hospitals claim there is an outstanding of over Rs 600 crore, and if the amount is not cleared soon, they will suspend cashless services to such beneficiaries.

Dr Girdhar J Gyani, the director general of the Association of Health Providers of India (AHPI), confirmed this. “We have been raising the issue of unpaid dues for several weeks but there is no action on it. We have written to the PM hoping for quick action in the matter,” Dr Gyani told TOI.

He added that the government owes about Rs 245 crore (Rs 165 crore CGHS and Rs 80 crore ECHS outstanding) to the Max group of hospitals, Rs 225 crore (Rs 70 crore CGHS and Rs 155 crore ECHS outstanding) to the Fortis group and Rs 73 crore (Rs 42 crore CGHS and Rs 31 crore ECHS outstanding) to Medanta Medcity.

The association is seeking a meeting with the finance minister and the health minister on the issue, failing which, Dr Gyani said, cashless treatment for CGHS and ECHS patients shall be suspended in another two to three weeks.

The AHPI claims non-payment of dues has pushed many hospitals to the brink of unsustainability.

“Hospitals are unable to pay even salary to their staff and there are cases where staff are being laid off. The problem is compounded due to fact that even CGHS reimbursement rates for procedures have not been revised since 2014, whereas hospitals have to pay nominal increment to staff and match inflation related expenses,” said Dr Gyani.

Max Healthcare has been in constant dialogues with government officials regarding its pending dues from CGHS. “Delay in payment has created a tough cash flow situation and we are finding it difficult to cope with the deficit, which continues to grow by the day,” said the spokesperson.

A similar situation had arisen in 2014 and 2016, when many big hospitals in Delhi had threatened to suspend cashless facility to CGHS patients over late payments and low rates for surgeries. “The government released some money then after which the services resumed,” Dr Gyani said.

The Central Government Health Scheme (CGHS) is a contributory health scheme for serving and retired central government employees and their dependent family members. At present, health ministry officials said, CGHS has 12.09 lakh primary cardholders and 35.72 lakh beneficiaries, out of which around 17 lakh beneficiaries belong to Delhi/NCR.

ECHS is a flagship scheme of the ministry of defence to provide quality healthcare of ex-servicemen pensioners and their dependents. It has about 55 lakh beneficiaries, including dependents.