Punjab's PHANA Suspend Cashless Treatment Under Ayushman Bharat Scheme Over Unpaid Bills

PHANA President Vikas Chabra revealed in a press conference that payments had been overdue for the past six months.

The Punjab Hospital and Nursing Home Association (PHANA) has immediately suspended cashless treatment services under the Ayushman Bharat Scheme, citing non-payment of dues by the state government, as reported by The Tribune.

The pending bills, amounting to INR 600 Cr, have left hospitals struggling to maintain operations, affecting 42 Lakh beneficiaries across Punjab. Of these, 13 Lakh individuals are registered under the below-poverty-line (BPL) category.

PHANA President Vikas Chabra revealed in a press conference that payments had been overdue for the past six months.

Despite multiple discussions with the CEO of the State Health Agency (SHA) and the state Health Minister, no concrete action has been taken to clear the outstanding payments.

Chabra stated, “We were repeatedly assured that the payments would be cleared within two weeks, but nothing has happened. Faced with no resolution and the threat of punitive action for refusing treatment, hospitals have decided to suspend cashless services under the Ayushman Bharat Scheme.”

MoU Violation

Dr Chabra accused the SHA of violating the Memorandum of Understanding (MoU) by delaying payments, asserting that the agency had no right to take action against hospitals for suspending services.

He highlighted the dire financial condition of many hospitals, some of which are on the brink of bankruptcy due to the state government’s financial crisis.

He also noted that the scheme had been expanded to include patients who could afford private healthcare, further overburdening hospitals and reducing access to care for the poor.

Operational Costs & Vendor Issues

Dr Divyanshu Gupta, PHANA’s state secretary, added that many hospitals were struggling to pay staff and suppliers and were taking loans to cover operational expenses.

Vendors of medicines and medical implants had stopped supplies due to unpaid dues. The suspension of cashless treatment has impacted around 600 hospitals and nursing homes across Punjab.

When asked about the Center’s role in the payment process, PHANA clarified that the payments are the state government’s responsibility and there has been no direct communication with the central government regarding the issue.

In another development, in July, Punjab CM Bhagwant Mann inaugurated 58 new ambulances equipped with advanced medical technology, increasing the state's fleet to 325.

Fitted with GPS, the ambulances are expected to reach patients within 15 minutes in urban areas and 20 minutes in rural areas.