Telangana’s Aarogyasri faces crisis as 360 private hospitals threaten service withdrawal

Over 360 private hospitals in Telangana have threatened to withdraw Aarogyasri services over unpaid dues of ₹1,300–₹1,400 crore. Hospital networks demand timely payments, revised packages, and a grievance redressal system, warning that delays are crippling small and mid-sized hospitals.

Hyderabad: For thousands of poor patients in Telangana who can’t afford expensive private health insurance, a visit to Aarogyasri empanelled hospitals for a medical procedure, has become a major ordeal every six months or so.

Frequent stoppages and withdrawal of vital healthcare services in Aarogyasri-empanelled hospitals, due to payment disputes between State government and private hospitals over pending medical bills, has become a major pain point. Patients are forced to run from pillar to post in search of a hospital that will accept their Aarogyasri card.

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This time around, over 360 private hospitals, mostly located in districts and run by individual doctors, have threatened to withdraw all medical services to Aarogyasri beneficiaries over uncleared medical bills that range from Rs 1300 crore to Rs 1400 crore.

“A similar situation was there in January. Then, the Health Minister and other officials promised early resolution. Six months down the line, nothing has changed,” says president, Telangana Network Hospitals Association (TANHA), Dr V Rakesh.

Inordinate delays in clearing medical bills and an unwillingness to revise Aarogyasri health packages are major reasons why most of the corporate hospitals in Hyderabad are not empanelled in the Aarogyasri insurance scheme, public health specialists said.

While corporate hospitals in Hyderabad have deep pockets and can financially survive without Aarogyasri Health Insurance Scheme, this is not the case with small and medium sized hospitals with a bed strength of 100 to 200.

“Delaying payments is the worst thing you can do financially to a private hospital, especially one located in districts. Several of our member hospitals are on the verge of closure because of the financial burden. The Aarogyasri Trust has to ensure a green channel is established for the prompt payment of medical bills ,” says Dr Rakesh.

Demands of private hospitals:

* Redraft MoU with Aarogyasri Trust

* Revise medical packages

* Ensure regular payments through a green channel

* Establish a reddressal system for private hosptials

* Stop cancellations/deductions of due amounts