Private hospitals in Punjab, reeling under mounting financial strain, have taken a dramatic step by halting cashless services under the Ayushman Bharat Pradhan Mantri Jan Arogya Yojana. The drastic measure was a result of the State Government’s prolonged failure to clear dues amounting to Rs 600 crore. The suspension, announced by the Punjab Hospitals and Nursing Homes Association (PHANA), marked a tipping point after six months of unresolved payments.
The PHANA’s decision to suspend services under the scheme affects thousands of beneficiaries, with many now left to seek alternative healthcare options. The Association’s spokesperson Dr Divanshu expressed frustration over the government’s inaction despite repeated reminders. “We have been providing services in good faith, but no payments have been made for months. The financial burden has become unsustainable, and we are drowning in debt,” he said during a press conference in Ludhiana.
Dr Divanshu highlighted that despite sending approximately 300 e-mails to the State Health Agency (SHA), no concrete action had been taken to resolve the issue. Instead, SHA CEO Babita had recently issued orders to take action against the hospitals that have now suspended services — a move seen as retaliatory by private healthcare providers. “It’s unacceptable. The SHA has breached the Memorandum of Understanding, yet they have the audacity to threaten us with punitive measures for ceasing services,” said Dr Divanshu.
The payment delays have severely affected the healthcare ecosystem in Punjab, with private hospitals — critical to the implementation of the Ayushman Bharat scheme — forced to curtail their services. With claims processing delayed and financial strains increasing, healthcare providers feel abandoned by the government, despite the essential role they play in offering cashless treatments to economically disadvantaged families.
Amid growing unrest, Punjab Health and Family Welfare Minister Dr Balbir Singh on Wednesday convened an urgent meeting to address the crisis. The Minister directed the State Health Agency to clear pending dues to the empaneled hospitals and ordered the recruitment of additional medical professionals to streamline the claims process. “We are committed to resolving these issues immediately. No one will be allowed to compromise healthcare delivery in Punjab,” said Dr Balbir.
The Health Minister’s intervention comes as the Punjab Government faces criticism for its handling of the healthcare scheme. Chief Minister Bhagwant Mann’s administration has stressed its dedication to ensure timely payments and effective healthcare services.
Issuing directions to the officers concerned to clear the pending payments to all the hospitals, empaneled under the Ayushman Bharat Mukh Mantri Sehat Bima Yojana, the Minister claimed that the Punjab Government has settled Rs 210 crore payment under this scheme from April 1, 2024, till September 15.
As part of the government’s strategy to resolve the crisis, Dr Balbir announced a recruitment drive aimed at hiring medical professionals to expedite the processing of claims. He further explained that these new recruits would undergo comprehensive training to enhance the efficiency and accuracy of claims assessments.
In addition to the recruitment efforts, the Minister emphasized the need to enroll more beneficiaries under the Ayushman Bharat Mukh Mantri Sehat Bima Yojana. “We are committed to ensuring that no eligible beneficiary is left out,” said the Minister, adding that the scheme currently provides coverage to over 45 lakh families in Punjab, offering cashless treatment at 772 government and private hospitals.
The Ayushman Bharat scheme has been a lifeline for millions of families, covering treatments such as knee replacements, heart surgeries, and cancer treatments, among others. However, the current payment crisis threatens to undermine the scheme’s objectives, putting both patients and healthcare providers in a difficult position.
