Private hospitals in J&K resume services under Ayushman Bharat following assurance from authorities

Srinagar, Sep 14: Private hospitals in Jammu and Kashmir on Saturday resumed free health services under the Ayushman Bharat scheme following assurance from Secretary Health and Medical Education J&K.

An official told the news agency—Kashmir News Observer (KNO) that private hospitals had stopped services from 1st September as payment was not released since March 2024.

He said that after court directions, Secretary Health and Medical Education assured that pending payment will be released in the shortest possible time.

Secretary Private Hospitals Association Maqsood Ahmad told KNO that all services have been resumed today after assurance from Secretary Health. He said the services have been resumed for the benefit of the public at large.

Notably, a meeting was convened by Secretary Health Dr Syed Abid Rasheed Shah with Private Hospital and Dialysis Centres Associations of J&K, where he stressed that in compliance with the High Court directions, all dues will be disbursed in the shortest possible time.

The High Court had instructed J&K administration to utilise available funds for reimbursing medical claims.

Private hospitals had stopped services under Ayushman Bharat scheme from September 1 due to non-receipt of funds amounting to around Rs 200 crore since March this year.

Last November, IFFCO-TOKIO General Insurance Company, the insurer for Ayushman Bharat in J&K, informed the State Health Agency (SHA) of their decision not to renew the contract after its expiry on March 14, 2025.

Initially, the scheme was managed by Bajaj Allianz GIC, whose contract ended in 2022. IFFCO-TOKIO was brought in as a replacement but has since attempted to withdraw from the scheme, citing financial losses. Despite requests from the SHA for the company to continue operations in the interest of patient care, IFFCO-TOKIO refused.

The SHA then approached the High Court to prevent the company’s exit, but the petition was dismissed on February 2, which complicated the situation further.

The government later appealed to the division bench to stay the single bench's order, making the issue sub-judice.

Recently, the high court directed the IFFCO TOKIO General  Insurance Company to continue with the existing arrangement as per the terms and conditions of the contract agreement regarding Ayushman Bharat-Pradhan Mantri Jan Arogya Yojana-SEHAT (AB-PMJAY-SEHAT) pending resolution of dispute with UT Government by the Arbitrator.

However, the company hasn't started implementing the scheme following which authorities have filed a contempt petition against the company.