Private hospitals threaten to stop cashless facility under central govt health schemes

The association of private hospitals has threatened to stop cashless service under the Central Government Health Scheme and Ex-Servicemen Contributory Health Scheme. The warning comes as bills worth over Rs 2,000 crore are pending with the Ministry of Finance.

New Delhi:Private hospitals have threatened to stop cashless service under the Central Government Health Scheme (CGHS) and Ex-Servicemen Contributory Health Scheme (ECHS).

The association of private hospitals has called stopping CGHS and ECHS cashless services as their bills worth over Rs 2,000 crore are pending with the Ministry of Finance.

Association claims that the pendency has worsened since the launch of Ayushman Bharat, or the Pradhan Mantri Jan Arogya Yojana (PMJAY) healthcare scheme by the Modi government.

Talking to ETV Bharat, Dr Giridhar Gyani, director general of Association of Health Providers in India (AHPI) said that two reminders have already been sent to the Union Finance Ministry as well as Health Ministry.

"The government is supposed to clear 70 per cent dues within five days of the transaction. But even after several months, hospitals do not get the dues from the government. This is a serious matter," said Gyani.

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If the private hospitals go cashless, it will impact more 37 lakh central government employees including their dependants, and pensioners under CGHS and over 52 lakh ex-servicemen and dependents covered under ECHS in over 1000 empanelled hospitals and nursing homes in 71 cities.

Two letters flagging pendency of bills were sent to the Union Finance Ministry in July and December. "But we have not received any response from the government side as of now," said Gyani.

The issue has become compounded following the fact that even CGHD reimbursement rates for procedures have not been revised since 2014, whereas hospitals have to pay nominal increment to staff and match inflation-related expanses.

Gyani said that the decision of the private hospitals, if implemented, will severely affect the government employees across sectors.

Gyani said that due to lack of funds, hospitals are facing a problem in releasing the salaries of their staff.

"How much loan a hospital will have to take from the bank to clear the staffs' salaries, and other necessary pending activities? asked Gyani.

The AHPI advocates with the government, regulatory bodies and other stakeholders in the health sector. Private as well as government hospitals are members of AHPI which collaborate and partner with other associations to fulfil India inclusive health goal.