HYDERABAD: Even as the state government on Monday averted a crisis by agreeing to partially clear fee reimbursement dues and convincing private professional colleges to call off their strike, over 300 Aarogyasri-empanelled private hospitals have announced a statewide strike from Tuesday midnight over long-pending demands and dues amounting to nearly Rs 1,400 crore.
The Telangana Aarogyasri Network Hospitals Association (TANHA) said members of 323 empanelled hospitals met on Sunday and decided to withhold services after three weeks of failed deliberations with the Aarogyasri Trust and health department officials.
TANHA president Dr Vaddiraju Rakesh told TNIE: “We have been in talks with the trust and the health minister’s office for months. For the last three weeks, we have been given only assurances but no action. Private hospitals are crumbling under the financial burden, and for medium-sized facilities, it has become nearly impossible to function. We demand a written assurance from the government along with a grievance redressal mechanism that can be held accountable for systemic failures. Mere verbal reassurances will not do.”
Private hospitals had gone on an indefinite strike in January this year over similar demands. The protest lasted four days before being called off after talks with the then Aarogyasri Trust CEO Siva Sankar Lotheti, when the government released Rs 730 crore in pending dues.
However, the problem persisted as arrears continued to mount. TANHA said that between January and April this year, around Rs 100 crore was released each month, covering payments only until August 2024. No payments have been made for the last four months. Currently, Aarogyasri dues have been pending for over a year, while EHS (Employees Health Scheme) and JHS (Journalists Health Scheme) dues have been pending for two years, bringing the total to around Rs 1,400 crore.
TANHA wants Aarogyasri Trust MoU redrafted
As per the MoU, dues are to be cleared within 40 days of approval — a norm that has never been followed, hospitals said.
Apart from clearance of arrears, hospitals are also demanding redrafting of the MoU with the Aarogyasri Trust, revision of treatment package rates, establishment of a grievance redressal mechanism, clear bifurcation of Aarogyasri and EHS/JHS, equal representation of hospitals in decision-making and streamlined payment channels.
Dr Rakesh stressed that rural areas would be hit hardest, as 85–90% of the population there relies on Aarogyasri health cards for treatment.
Private hospitals also expressed frustration over what they see as government indifference, despite Aarogyasri being a flagship scheme of the Congress government. “Their return to power had raised hopes of resolution, but nothing has changed,” the association said.
Aarogyasri Trust CEO Dr Uday Kumar was unavailable for comment.