In a significant development that could severely impact public healthcare, the Andhra Pradesh Speciality Hospital Association (ASHA) has announced the suspension of all services under the Dr. NTR Vaidya Seva scheme, effective October 10. This drastic decision is a direct result of the state government’s persistent failure to clear outstanding dues, which have now escalated to an alarming ₹2,700 crore.
During a media briefing held in Vijayawada on Wednesday, ASHA president K. Vijay Kumar revealed that network hospitals have provided medical services worth over ₹5,300 crore to the public since the TDP-led NDA government assumed power in June 2024. Of this substantial amount, only ₹3,800 crore has been settled so far. Dr. Vijay Kumar further noted that additional dues carried over from the previous government have pushed the total pending amount to approximately ₹2,700 crore. Despite Health Minister Satya Kumar Yadav’s recent statement in the Assembly that ₹670 crore had been uploaded to the Comprehensive Financial Management System, a government payments portal, the association confirms these funds have yet to be released.
Typically, bills for services rendered under the scheme are cleared within a two-month timeframe. However, Dr. Vijay Kumar highlighted a concerning situation where bills totaling ₹2,000 crore have been languishing under scrutiny for more than 400 days, with no clear resolution in sight. This marks a recurring challenge; the association had previously announced a discontinuation of medical services in May, a decision that was later reversed following the direct intervention of Chief Minister N. Chandrababu Naidu. The current decision underscores the lack of tangible progress in addressing the mounting financial liabilities.
S.V.L. Narayana Rao, vice president of ASHA, emphasized the association’s inability to continue providing medical services under the scheme amidst the accumulating dues. He clarified that while actual treatments would remain free of charge, patients would be required to pay out-of-pocket for all pre-operative procedures, such as essential blood tests and scans, once the suspension commences on October 10. ASHA has firmly stated its refusal to participate in any further meetings or discussions until the ₹670 crore currently on the portal is released and the lengthy scrutiny process for the remaining ₹2,000 crore is immediately completed. In a formal letter to the Health Minister, ASHA reiterated that their decision to halt services is intended to highlight the critical urgency of the situation, rather than to inconvenience the public. The association also stressed the vital importance of clearing these pending dues before the proposed introduction of the Universal Health Scheme in the state.