Andhra promises to pay Rs 1000 crore dues to private hospitals in 10 days

The private network hospitals in the State called off their strike, after suspending all healthcare services under Dr. NTR Vaidya Seva for six days, following the State government’s assurance that a portion of their dues would be cleared within 10 days.

A.P. Speciality Hospitals’ Association (ASHA) vice president S.V.L. Narayana Rao said while similar assurances were made in the first round of meeting, this time, the State government has mentioned in the the Minutes of Meeting that ₹1,000 crore would be paid to private network hospitals within 10 days. The association members took part in a virtual meeting with health officials.

Usually, when the government releases funds, they are allocated to both private and government network hospitals. This time, however, the government has stated that a payment of ₹1,000 crore will be made solely to clear the dues pending with private hospitals, around 600 across the State. Even after this, ₹1,000 crore in dues will remain outstanding.

According to ASHA, out of ₹3,000 crore outstanding dues, ₹2,000 crore is incurred by private hospitals and the remaining by the government hospitals. “In addition to the initial payment, the government has agreed to pay ₹150-₹170 crore towards the ongoing expenses every month,” Dr Narayana Rao said.

The monthly expenses incurred by all 800 network hospitals in the State under the scheme touches ₹350 crore, 60% of which comes from private hospitals. “Despite the monthly payment of ₹150-₹170 crore, ₹40-₹50 crore will keep getting added to the outstanding dues,” Dr Narayana Rao said, stating that it is, however, a good deal.

More than 500 private hospitals, which participated in the six-day strike, are likely to resume all services under the scheme from April 8. The Hindu