Private hospitals across Telangana are set to halt services under the Aarogyasri health scheme from midnight on Tuesday, protesting non-payment of over Rs 1,400 crore in pending dues from the state government. The Telangana Aarogyasri Network Hospitals Association (TANHA) announced the decision, stating that despite multiple rounds of talks with the Health Minister and Aarogyasri CEO, the issue remains unresolved. TANHA president Dr. Vaddiraju Rakesh warned that the suspension will severely impact poor and middle-class patients, particularly those requiring critical treatments such as cardiac and renal care.
Government officials stated that ₹100 crore was released on Monday and promised to release an additional ₹40 crore soon. However, hospital representatives argue that this amount is negligible compared to the ₹1,400 crore owed under Aarogyasri, the Employees Health Scheme (EHS), and the Journalists Health Scheme (JHS). They noted that a similar standoff occurred in January over Rs 1,100 crore dues, which ended after the government promised to allocate Rs 200 crore monthly through a green channel — a commitment they say has not been honored. With no response from the government even after their August 31 ultimatum, TANHA has confirmed the suspension of Aarogyasri services, raising concerns over access to essential healthcare in the state