Private hospitals, dialysis centres face financial crisis, seek emergency funds

Srinagar, Aug 13: Private hospitals and dialysis centres empanelled under the Ayushman Bharat Scheme (AB-PMJAY) in Jammu and Kashmir are facing a severe financial crisis, threatening the continuity of the free health insurance scheme.

According to the communication, these healthcare providers have not received payments for services rendered under the PS-7 Scheme since March 14, 2024, pushing many to the brink of bankruptcy.

In response to this dire situation, a letter has been submitted to the Deputy Commissioner (DC) of Srinagar, urgently requesting the release of emergency funds to prevent the collapse of these vital healthcare services.

“The crisis has been escalating for months. In April 2024, an official meeting with the Chief Executive Officer (CEO) of the Ayushman Bharat scheme resulted in assurances that the issue would be resolved by the first week of May 2024.

However, when payments were not released as promised, the affected healthcare providers applied to the Chief Secretary through the CEO of Ayushman Bharat on May 18, 2024. This application requested the release of funds by May 31, 2024, warning that failure to do so would force hospitals to suspend services due to lack of funds,” the communiqué said. On May 31, 2024, the Secretary of Health conducted an online meeting with all private hospitals and dialysis centres in J&K.

During the meeting, healthcare providers were assured that their money was safe and that the matter would be resolved soon.

“Based on these assurances, the planned suspension of medical services in the region was temporarily postponed,” the communication addressed to DC Srinagar said. Despite these repeated assurances from various government officials, the financial situation for these healthcare providers remains critical.

Many are struggling to maintain operations, pay staff, and procure essential medical supplies.

The letter to the DC Srinagar emphasises the providers’ commitment to their responsibilities towards the people, highlighting that they have continued to offer medical services despite mounting financial pressures.

However, it warns that without immediate intervention in the form of emergency funds, the entire system is at risk of collapse.