State government’s new EHS scheme hits roadblock, as private hospitals refuse to join

Private hospitals under the Telangana Network Hospitals Association have refused to provide services under the proposed new Employee Health Scheme, citing financially unviable CGHS-based package rates. The association has sought revised tariffs, better representation, grievance redressal, and clearance of pending EHS dues

Hyderabad: In a setback to the State government’s proposed new Employee Health Scheme (EHS), private hospitals under the Telangana Network Hospitals Association (TANHA) have refused to provide healthcare services under the proposed new EHS scheme.

The network hospitals under TANHA, which provide 70 per cent to 80 per cent of healthcare services under the State-run EHS in Telangana, on Tuesday said that the proposed new scheme is financially not viable.

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TANHA will not provide services under the proposed new EHCT (Employee Health Care Trust) scheme if it is implemented with the revised CGHS tariff. The proposed package rates are significantly lower than the existing Aarogyasri and previous EHS package rates, making the scheme financially unviable for hospitals, it said.

The State president of TANHA, Dr Vaddiraju Rakesh, and representatives of network hospitals also met CEO, EHCT, K Hanumanthu, to discuss the issue.

In the meeting, TANHA requested that treatment package rates be revised realistically using a scientific costing methodology rather than blindly adopting the revised CGHS package rates.

The private hospitals demanded the inclusion of at least 10 representatives from different medical specialties in all key committees so that network hospitals can also participate in policy decisions and resolve operational issues quickly.

TANHA urged the State government to establish a robust, transparent, and time-bound grievance redressal mechanism under the new EHS/EHCT, addressing one of the major shortcomings of the previous EHS. The private hospitals also requested the immediate release of all outstanding payments under the previous EHS before implementing the new EHS/EHCT.

The association further stated that these issues have been repeatedly brought to the attention of the EHCT CEO, the State government, and other senior health officials over the past two months.

Despite continuous representations and follow-up, no concrete action has been taken so far, TANHA said.

Addressing these issues before implementation is essential to ensure the success and long-term sustainability of the new scheme. Otherwise, there is a serious risk of repeating the shortcomings of the previous EHS, thereby compromising the objective of providing quality, accessible, and sustainable healthcare to Telangana government employees, pensioners, and their dependants, TANHA added.