Aam Aadmi Party (AAP) led Punjab Government’s ambitious project — Aam Aadmi Clinics (AACs) — are set for a transformation as part of an agreement reached with the Centre to unlock nearly Rs 650 crore in withheld National Health Mission (NHM) funds. The change, a result of negotiations between the AAP-led Punjab Government and the BJP-controlled Centre, aimed at harmonizing the state-run healthcare clinics with the Central Government branding norms.
For months, Punjab Government had faced funding obstacles from the Centre, which argued that the AAP Government’s rebranding of Ayushman Bharat-Health and Wellness Centres to Aam Aadmi Clinics went against NHM guidelines. Sources revealed that around 400 out of the state’s total 870 AACs will soon adopt a co-branded identity, merging elements of the original Ayushman Bharat design with Aam Aadmi Clinic features.
Under the same agreement, the pictures of Punjab Chief Minister Bhagwant Mann, prominently displayed on the AACs’ exteriors, will also be removed. In exchange, Punjab expects to receive NHM funds in installments, bringing much-needed support to the state’s healthcare infrastructure.
Since early 2023, the Union Government had withheld NHM funding, totaling Rs 650 crore, citing branding conflicts. Additionally, Punjab’s requests for a special assistance grant of Rs 1,100 crore also remained stalled due to the branding impasse. The Centre insisted that the clinics conform to the Ayushman Bharat identity, which includes specific colour schemes, logos, and standardized facades.
Sharing information on the sidelines of the ‘Punjab Vision 2047’ event at Punjab University on Tuesday, Punjab Health and Family Welfare Minister Dr Balbir Singh confirmed that a mutual agreement has now been reached, enabling a joint rebranding strategy that retains the state’s autonomy over certain clinics while allowing others to incorporate Ayushman Bharat branding.
Dr Balbir explained, “The clinics set up in state-owned buildings, primarily under the existing healthcare framework, will retain their original name and branding if fully state-funded. For clinics built in partnership under the NHM’s 60:40 funding model, however, a co-branded approach will be adopted.”
Punjab Government’s journey to establish AACs began shortly after the AAP came to power, emphasizing accessible healthcare. These clinics provide free consultations, 80 ‘free’ diagnostic tests, and essential medications, primarily targeting underserved communities. However, the rapid expansion of AACs led to friction with the Centre, as the AAP Government repurposed existing health centers and updated them with state-centric branding, sparking a funding dispute. Yellow-painted facades featuring Chief Minister Mann's photograph soon became a symbol of AACs’ localized healthcare, but they also marked a deviation from the NHM’s co-branded design requirements.
While the new co-branded format marks a compromise, it also signaled a significant win for Punjab’s administration, which managed to secure both NHM and Ayushman Bharat recognition. These clinics will now prominently display Ayushman Bharat logos and incorporate traditional art and motifs, aligning with the Centre’s stipulations. Remaining clinics, especially those solely state-funded or housed in donated premises, will continue under the original AAC branding.
Sources familiar with the discussions highlighted that the MoU between the Union Health Ministry and the Punjab Government, initially signed in 2021, had mandated strict adherence to Ayushman Bharat guidelines. Clauses outlined co-branding and local language compliance, yet Punjab’s AAC transformation had strayed from the mandate, necessitating this recent intervention. Despite these challenges, the AAP Government argued that the clinics’ rebranding as AACs enhanced their visibility and encouraged community engagement, supporting the broader mission of equitable healthcare.
With this compromise, Punjab's government expects to receive NHM funds in phased installments, amounting to approximately Rs 650 crore, aimed at scaling healthcare access across the State. Dr Balbir anticipated that the phased release will commence within the fiscal quarter, breathing new life into Punjab's healthcare agenda.
