The Andhra Pradesh government has initiated the clearance of long-pending dues to empanelled private hospitals under the Dr NTR Vaidya Seva Trust. A total of Rs 1,000 crore is being rolled out through a tri-party bill discounting agreement (TBDA) mechanism.
Online Portal and First Phase Payments
A dedicated online portal developed by the AP Centre for Financial Systems and Services is being used to execute agreements and streamline payments. So far, 323 hospitals have applied under the scheme. Payments have already begun for institutions that completed formalities. In the first phase, around Rs 62 crore was released to 25 hospitals.
Pending Dues and Verification
Officials stated that a total of Rs 2,044 crore is currently pending with 873 private hospitals. Of this, bills worth Rs 1,000 crore have been verified and cleared for immediate disbursal under the TBDA model. Payments are being directly credited to the bank accounts of participating hospitals.
Mechanism and Financial Impact
Under the TBDA mechanism, the AP Power Finance Corporation releases funds on behalf of the state government after deducting applicable annual interest in advance. The remaining amount is then paid to hospitals, enabling quicker liquidity while deferring the state's financial burden.
Government's Payment Record
The government stated that since assuming office, it has paid Rs 5,556 crore to empanelled hospitals. This includes clearing Rs 2,403 crore in dues left behind by the previous regime as of June 2024. Between June 2024 and April 2026, medical services worth Rs 6,900 crore have been delivered under the scheme, with Rs 3,162.68 crore already reimbursed to hospitals.
Outstanding Dues
According to official data, despite the ongoing payments, dues totalling Rs 3,746.68 crore remain outstanding. This includes Rs 2,044.17 crore owed to private hospitals.
