Vijayawada, April 2, 2025: The Andhra Pradesh Speciality Hospital Association (APSHA) has announced that private hospitals across the state will suspend cashless services under the Dr. NTR Vaidya Seva scheme. The decision comes in response to unpaid dues amounting to approximately ₹3,500 crore from the state government.
The Dr. NTR Vaidya Seva scheme, a flagship health initiative aimed at providing financial relief to economically weaker sections for medical treatment, has been facing financial distress due to the pending payments. Private hospitals claim that despite repeated appeals, the government has failed to clear the dues, leaving them with no choice but to halt cashless services until the matter is resolved.
Mounting Healthcare Crisis
Health experts and opposition leaders have criticized the current government under Chief Minister N. Chandrababu Naidu for its handling of the state’s public healthcare system. Critics argue that the previous government had prioritized public health by expanding government medical colleges, increasing the number of covered procedures, and raising the insurance limit under Aarogya Sri to ₹25 lakh.
However, in the last ten months, the Naidu-led administration has primarily focused on renaming Aarogya Sri while shifting attention towards privatization of government medical institutions. This move has sparked controversy, with many questioning the state’s commitment to affordable healthcare.
Government’s Response
The state health department has assured that discussions are underway to address the concerns raised by APSHA. Officials have stated that efforts are being made to clear pending dues in a phased manner. However, private hospitals remain skeptical, insisting on immediate action to prevent disruptions in patient care.
With thousands of patients dependent on the cashless treatment facility, the suspension poses a significant challenge for low-income families who rely on the scheme for critical medical procedures. The coming days will be crucial in determining how the state government navigates this healthcare crisis amid growing public scrutiny.
Way Forward
Healthcare experts suggest that the government must urgently release pending payments and work towards a sustainable funding model to prevent recurring crises. Meanwhile, patients and their families await clarity on when normal services under Dr. NTR Vaidya Seva will resume.
As the healthcare sector grapples with these financial difficulties, all eyes are on the state government’s next course of action in resolving the crisis and ensuring uninterrupted medical services for the people of Andhra Pradesh.
