VIJAYAWADA: In a significant relief to thousands of patients across the State, the Andhra Pradesh Speciality Hospitals Association (ASHA) announced on Monday evening the resumption of cashless services under the NTR Vaidya Seva scheme from April 8.
The decision comes after Chief Minister Nara Chandrababu Naidu held an emergency meeting with ASHA representatives and approved the immediate release of Rs 500 crore to clear a portion of the Rs 3,500 crore in long-pending dues to empanelled private hospitals.
The resumption follows a day after ASHA suspended services in over 730 private hospitals, leaving patients—especially from economically disadvantaged backgrounds—without access to free medical treatment.
The association had earlier warned that without an assurance or payment roadmap, they could no longer continue services, citing unsustainable financial pressure and unpaid dues, including Rs 2,000 crore owed to private hospitals alone.
During the meeting, the Chief Minister acknowledged the strain on the healthcare sector and assured ASHA that clearing the remaining dues would be a priority.
Special Chief Secretary Krishna Babu followed up with ASHA members and confirmed that a detailed consultation with the Health Minister would take place after April 10 to address critical issues such as package rate revisions, structured payment timelines, and hospital sustainability.
While the sanctioned Rs 500 crore falls short of the total dues, ASHA President Dr K Vijay Kumar said the association opted to resume services in the public interest, particularly for Below Poverty Line (BPL) patients.
“We appreciate the Chief Minister’s swift response. With his assurance, we have decided to restart services. However, our demand for timely payments and systematic reforms remains,” he said.
Earlier, ASHA had expressed frustration over years of unpaid dues, outdated package rates since 2018, and alleged pressure tactics by field officials. The standoff had drawn criticism from all quarters and pushed the healthcare system to the brink.
With services set to resume, hopes have risen for a long-term resolution between the government and the private hospital network.