Telangana Govt Clears ₹1,779 Crore Aarogyasri Dues, Appeals to Private Hospitals to Resume Services

Prime tensions between the Telangana government and private hospitals over delayed Aarogyasri reimbursements have eased somewhat. The state has cleared ₹1,779 crore under the Aarogyasri scheme, one of the highest payments ever made, and has urged empanelled private hospitals to continue services that were about to be suspended.

What’s Going On

• Private hospitals under the Telangana Aarogyasri Network Hospitals Association (TANHA) had announced that services under the Aarogyasri, Employee & Journalist Health Schemes (EHS/JHS) would be suspended from midnight of September 16. They cited unpaid dues of ₹1,300 – ₹1,500 crore and delays in reimbursements stretching beyond 40 days many cases reportedly awaiting payment for over 400 days.
• Rajiv Aarogyasri Health Care Trust (RAHCT) CEO Uday Kumar appealed to hospitals to remain functional, emphasizing that no poor family should be denied treatment. More than 99 lakh (9.9 million) Below-Poverty-Line families depend on these schemes.

What the Government Has Done

• The government made a record monthly average payout of ₹95 crore in FY 2024-25 under the scheme.
• As part of resolving pending dues, phase-wise monthly payments of ₹75 crore were made for claims from December 2023 to December 2024.
• Recently, that monthly payment figure has been raised to ₹100 crore after hospital representations.
• The total of ₹1,779 crore cleared includes both past arrears and newer claims, marking the highest amount settled in any one period under the scheme.

Hospitals Viewpoint

TANHA president Dr. V. Rakesh, however, maintained that despite assurances, the financial burden on small and medium hospitals has been heavy. Many are facing cash-flow stress, delayed salaries, and operational deficits.

Hospitals had warned that without timely reimbursements, many may not be able to continue services under the cashless Aarogyasri scheme.

What’s Next

• Hospitals will decide in coming days whether to suspend services or continue under the scheme, based on how quickly the cleared funds are received in their accounts.
• The state has been asked to streamline reimbursement protocols, ensure faster disbursements, and introduce stricter accountability in workflow to avoid such long delays.
• All stakeholders are watching closely whether government actions will restore trust and prevent disruption of healthcare access for vulnerable populations.

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