AHMEDABAD: The Ayushman Bharat health scheme has come under fresh scrutiny in Gujarat after the state government informed the Assembly that 24 empanelled hospitals in Ahmedabad were penalised for charging patients who held valid PM-JAY cards, despite the scheme guaranteeing free treatment.
The disclosure came during the ongoing Assembly session on Thursday when the government responded to a question raised by a Congress legislator regarding violations of the Pradhan Mantri Jan Arogya Yojana (PM-JAY), the flagship health insurance scheme popularly known as Ayushman Bharat.
In its written reply, the Gujarat government acknowledged that as of January 31, 2026, multiple incidents had been recorded in Ahmedabad city and district where patients were allegedly charged for treatment even though they were eligible for free care under the scheme.
The admission has placed the spotlight on the functioning of empanelled hospitals under the programme, which was designed to provide cashless treatment to economically weaker families.
According to the government’s own data tabled in the Assembly, 24 hospitals recognised under the scheme in Ahmedabad were found to have violated PM-JAY guidelines over the past two years.
Following complaints and subsequent verification, authorities issued formal notices to all 24 hospitals and imposed financial penalties for breaching the scheme’s rules.
The government further revealed that a cumulative fine of Rs 36,84,369 has been imposed on these hospitals in Ahmedabad during the past two years.
While the penalties indicate regulatory action, the disclosure has simultaneously raised deeper concerns about how hospitals participating in a taxpayer funded welfare scheme allegedly continue to charge patients despite clear guidelines mandating cashless treatment.
Just a year ago, a major scandal erupted involving Khyati Hospital, which exposed alleged manipulation of the scheme and triggered public outrage.
According to reports at the time, the hospital had organised a medical camp in Borisna village in Kadi. The camp was ostensibly held to extend government health benefits to villagers.
However, the situation soon turned controversial. Villagers alleged that only those who possessed Ayushman cards were later called to the hospital in Ahmedabad for treatment, even though many of them had no serious medical complaints.
Shockingly, several patients were reportedly subjected to angioplasty procedures, a highly specialised cardiac intervention.
The situation escalated dramatically when two patients died during the course of these procedures, sparking anger among villagers and family members.
Outraged locals subsequently staged protests at the hospital premises, triggering a wider investigation and bringing the entire episode widely referred to as the Khyati Hospital scandal into public focus.
The issue resurfaced in the Assembly as opposition leaders questioned the integrity of the system meant to safeguard vulnerable patients.
Senior Congress leader Amit Chavda, speaking in the House earlier, launched a sharp attack on the alleged misuse of the scheme.
“The Pradhan Mantri Jan Arogya Yojana was meant to be a blessing for poor and middle class beneficiaries,” he said, warning that some private hospitals have instead turned it into a tool for profit.
He pointed to incidents such as the Khyati Hospital case as evidence that innocent patients’ lives are being placed at risk merely to claim government reimbursements.
Chavda further argued that such episodes expose the existence of what he described as a “medical mafia” operating within welfare schemes, urging the government to adopt a far stricter enforcement mechanism.
The latest Assembly admission now adds statistical weight to those concerns.
While the scheme continues to expand access to healthcare across the country, the discovery that dozens of hospitals in just one district violated its basic principle of free treatment raises questions about monitoring, accountability and patient protection.