VIJAYAWADA: The Andhra Pradesh government has begun clearing Rs 1,000 crore in dues to private hospitals affiliated with the NTR Vaidya Seva Trust, introducing a new Tri-Party Bill Discounting Agreement (TBDA) mechanism to streamline payments.
Officials explained that under this system, the AP Power Finance Corporation, a state-run entity, disburses funds to hospitals based on verified bills submitted through a developed portal by the AP Centre for Financial Systems and Services.
Hospitals receive payments directly into their accounts after deducting annual interest, with agreements signed by hospital representatives, corporation officials, and the Trust CEO. So far, 323 hospitals have registered on the portal, and Rs 62 crore has already been released to 25 hospitals. The government currently owes Rs 2,044 crore to 873 private hospitals, of which bills worth Rs 1,000 crore have been cleared for payment.
NTR Vaidya Seva Trust CEO Chakradhar Babu briefed Health Minister Y Satya Kumar Yadav on the progress, noting that since the coalition government assumed office, Rs 5,556 crore has been paid to hospitals.
It includes settlement of Rs 2,403 crore in arrears left by the previous administration. Between June 2024 and April 2026, medical services worth Rs 6,900 crore were provided, with hospitals getting Rs 3,162.68 crore so far.
Officials emphasised that the TBDA system ensures transparency, with hospitals able to track payment amounts, deductions, and status through the portal.
The government has reiterated its commitment to clearing pending dues and supporting uninterrupted health care services, with Rs 3,746.68 crore still to be paid, including the current tranche of Rs 1,000 crore now being processed.