In Srinagar, a legal battle between the Jammu and Kashmir government and non-payment to empanelled hospitals has thrown a wrench into the smooth operation of the Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB-PMJAY), also known as the ‘Golden Card’ scheme. This turmoil follows the withdrawal of the insurer company from its contract and the lack of resolution by the Jammu and Kashmir government.
According to hospital owners on the panel, they are facing a “dire situation” due to non-payment, putting their ability to provide free services and maintain their hospitals at risk. Empanelled hospitals based in Jammu have notified the Jammu and Kashmir administration of their intention to cease operations from June 15 due to mounting losses preventing them from covering salaries, purchasing medicine, and acquiring other essential equipment.
Despite their desire to continue serving patients, they feel compelled to halt services under the Ayushman scheme due to outstanding bills since March. The financial strain has led to escalating bank loan interests, unpaid employee salaries, and outstanding bills for utilities and supplies, lamented an empanelled hospital owner from Jammu.
While acknowledging the importance of providing healthcare, they expressed frustration at the lack of action despite their efforts to communicate their plight to officials. Meetings with key authorities, including the Chief Secretary and Health Commissioner, have not yielded tangible solutions, with officials citing ongoing legal matters as a barrier to addressing their payment issues.
The disruption to the Ayushman Bharat Sehat Scheme began last year when IFFCO-TOKIO General Insurance Company Limited unilaterally terminated its contract with the Jammu and Kashmir government. Initially scheduled for three years, the contract was slated to run from March 10, 2022, to March 14, 2025.
Launched by Prime Minister Narendra Modi in 2018, the Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB-PMJAY) aimed to provide health insurance coverage of Rs 5 lakhs to all residents of Jammu and Kashmir, offering a lifeline to patients seeking treatment at private hospitals free of charge.
Despite appeals for intervention and resolution of grievances, hospital owners feel that the administration is delaying action, leaving them in a precarious financial situation. Attempts to reach Chief Secretary Atal Dulloo for comment were unsuccessful, as he did not respond to inquiries.