Srinagar: The High Court of Jammu and Kashmir and Ladakh has temporarily halted the suspension of Srinagar's two private hospitals — Shifa Hospital and Florence Hospital — under the Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB PM-JAY).
On January 11, the State Health Authority (SHA) suspended the hospitals, alleging violations of the scheme's guidelines, including pressuring patients to pay additional fees. SHA had also imposed a penalty of over Rs 26 lakh on Shifa Hospital and around Rs 3 lakh on Florence Hospital for the illegal payments collected from aggrieved beneficiaries.
However, both hospitals took the legal route and challenged the SHA's action. They argued that "it (SHA's action) was procedurally flawed and denied them natural justice."
On Thursday, HC's vacation bench in Srinagar led by Justice Muhammad Yousuf Wani paused the suspension of the hospitals while ordering the SHA to conduct a fresh inquiry into the case. In addition, Justice Wani ordered SHA to give hospitals two weeks to respond to the December 18, 2024, show-cause notifications. The court has scheduled the case's next hearing for February 7, 2025.
The SHA defended its actions by stating that the suspension and penalties were imposed in response to patient complaints and inspections. However, pointing out flaws in the authority's approach, the court stressed the importance of due process.
