Andhra Private Hospitals Issue Ultimatum Over Universal Health Scheme Participation
The Andhra Pradesh Speciality Hospitals Association (ASHA) has delivered a stern warning to the state government, declaring that private network hospitals will refuse to participate in the proposed Universal Health Scheme (UHC) unless two critical demands are met. The association insists on the clearance of all pending dues under the Dr NTR Vaidya Seva Trust scheme and a comprehensive revision of package rates before any agreements are signed.
Financial Strain and Government Inaction
This decisive stance was formalized during ASHA's state executive meeting held in Vijayawada on Tuesday. Addressing the media afterward, ASHA State President Dr. K. Vijay Kumar highlighted the severe financial distress plaguing hospitals due to the government's failure to settle long-overdue payments. He emphasized that despite months of persistent appeals and discussions with state authorities, there has been no constructive response or resolution to the mounting arrears.
"Without clearing the old dues and revising package rates, we are not ready to sign agreements, participate, or provide services under the Universal Health Scheme," Dr. Kumar stated unequivocally. The association leaders underscored that the operational viability of hospitals is at stake, with many institutions struggling under the weight of unpaid bills and escalating costs.
Criticism of Scheme Design and Consultation Process
Beyond financial grievances, ASHA expressed significant concerns regarding the design and implementation framework of the Universal Health Scheme. The leaders alleged that private hospitals were completely excluded from consultation during the policy formulation stages, resulting in a scheme they describe as lacking scientific planning and practical feasibility.
Dr. Kumar pointed out that while the individuals involved in crafting the UHC may possess considerable clinical and administrative expertise, they likely lack a thorough understanding of the day-to-day operational challenges and financial expenditures faced by network hospitals. Including representatives of private hospitals in the committee would have helped develop a more practical and sustainable model, he added, suggesting that such inclusion could have preempted many of the current issues.
Disputes Over Package Rates and Coverage Comparisons
The association also refuted government claims that state package rates are superior to those offered under central government schemes. ASHA leaders argued that such comparisons are misleading and inappropriate. They clarified that central schemes typically cover only about 20 to 30 percent of the population, whereas the state's Universal Health Scheme aims to encompass nearly the entire population of Andhra Pradesh.
Even with broader coverage, several surgical procedures remain financially unviable for hospitals due to inadequately low package rates, the association noted. This financial impracticality threatens the quality and availability of healthcare services under the scheme.
Government Promotions and Settlement Proposals Under Fire
ASHA further criticized the state government for promoting the scheme by advertising that patients can access medical assistance up to Rs. 25 lakh under programs like NTR Vaidya Seva or Aarogyasri. The association contends that this creates undue pressure on hospitals to deliver services without commensurate financial support, exacerbating their economic burdens.
Additionally, the association denounced the government's recent proposal to release Rs. 1,000 crore if network hospitals agree to provide discounts on pending dues through a One Time Settlement (OTS) arrangement. ASHA leaders asserted that hospitals are being coerced into accepting partial payments due to mounting operational costs, interest burdens, and the urgent need for liquidity, rather than out of voluntary agreement.
The ultimatum from ASHA sets the stage for a potential standoff that could significantly impact the rollout and effectiveness of the Universal Health Scheme in Andhra Pradesh, affecting healthcare access for millions of residents.
