The doctor said that 25 years of dedicated service made the association “believe we are deserving of respect and acknowledgment."
Published Aug 15, 2024 | 7:00 AM ⚊ Updated Aug 15, 2024 | 11:04 AM
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The Andhra Pradesh Speciality Hospital Association (ASHA) has said that the state government has now accumulated dues of a staggering ₹2,500 crore, and hospitals have not received any significant payments for the past nine months under the NTR Vaidya Seva Scheme, a flagship health initiative of the Government of Andhra Pradesh.
The scheme was aimed at providing quality healthcare services to economically disadvantaged people, and facilitating access to a range of medical services, including hospitalisation and treatment for various ailments, thereby improving the overall health outcomes in the state.
In a letter to the Chief Executive Officer (CEO) of NTR Vaidya Seva, the ASHA president, Dr K Vijay Kumar expressed grave concern over the situation. “Despite raising the issue of outstanding dues in numerous previous communications, I must once again bring to your attention the severe financial strain we are under. The dues have now accumulated to a staggering ₹2,500 crores, and hospitals have not received any significant payments for the past nine months. It is becoming increasingly impossible for us to maintain staff, infrastructure, drugs, and disposables without the necessary funds.”
ASHA president’s letter to NTR Vaidya Seva CEO. (Supplied)
Dr Kumar further regretted that the association would be unable to continue providing services under the NTR Vaidya Seva scheme from 15 August. “We have already met with you and submitted a letter on 30 July, when you assured us that some dues would be paid by 10 August. However, this commitment has not been fulfilled. It appears there is little concern for addressing these issues or engaging with stakeholders regarding the new policies being introduced,” he said.
He wrote that despite the association’s repeated efforts to engage constructively and ensure the uninterrupted provision of healthcare services to the people of Andhra Pradesh, they have been met with a cold and uncooperative response, leaving them with no other option.
“Rather than extending a helping hand to the hospitals that have faithfully served the state, the actions taken appear to be more threatening in nature,” he said, adding that the association fully understands the financial crisis that the state faces.
He noted that 25 years of dedicated service in building the healthcare infrastructure of Andhra Pradesh made the association “believe we are deserving of respect and acknowledgment. The continuous disregard for our contributions and the challenges we face is disheartening.”
He explained that hospitals will not be able to resume services unless the dues up to April 2024 are settled in full. “We understand that this letter may come across as harsh, but it is our responsibility to convey the harsh reality that hospitals are currently facing.”
The doctor explained that the association comprises about 380 hospitals, and that the bills for the past nine months have not been cleared. “Imagine how employees would react if a previous government failed to pay their salaries. How would they feel if someone simply said they couldn’t pay? Health is an essential service, and regardless of which government is in power, it should be the top priority. If the government doesn’t see it as such, how can small organisations withstand such enormous debts?” Dr K Vijay Kumar asked in a conversation with South First.
He said several of the hospitals in the association are small nursing homes with 50 to 100 beds, not large corporations. Unlike big corporate hospitals in Andhra Pradesh, they do not have deep pockets. “In June, after the new government took office, around 10 percent of the outstanding dues were released. At that time, about ₹1,700-1,800 crore was owed, and only ₹160 crore was released,” he said.
The state government suggested that another ₹200 crore may be given, “but this is an insignificant amount. Similar promises were made before, even in written documents, but they were never fulfilled. Unless at least 50 percent of the dues are cleared, I don’t think hospitals will be ready to continue their work,” he said, adding that the way the scheme operates, the margin for many services is fixed at just 10-15 percent, with fees for many packages last revised in 2017.
“Considering the current situation, hospitals are struggling to sustain themselves, particularly when dealing with vendors,” he said, explaining that vendors with dues exceeding 45 days would not provide goods at the usual cost. “Hospitals are now forced to pay 5-8 percent extra. These nursing homes are also paying 10-12% interest on overdrafts, further straining their finances,” he said.
The doctor pointed to other challenges as well. After coming to power, the TDP government renamed YSR Aarogyasri scheme to NTR Vaidya Seva. “When the scheme’s name was changed from YSR Aarogyasri to NTR Vaidya Seva, hospitals had to update all boards, files, and documents. This unnecessary operational expense cost hospitals some sum,” he said, explaining that hospitals also face frequent inspections and threats from authorities. “They are often cornered into making minor mistakes, which are then used to impose unreasonable fines and penalties. These are the issues we are currently facing,” he said.
(Edited by Rosamma Thomas)
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