Tuesday, January 14, 2020

Private hospitals threaten to suspend cashless treatment over pending dues

14/01/2020 , Staff Reporter, Bengaluru

With several crores due from the Union and State governments for the Central Government Health Scheme (CGHS) and the ex-servicemen’s contributory health schemes (ECHS), hospitals have threatened to suspend cashless service under these two schemes citing financial constraints.

Hospitals claimed they are unable to bear day-to-day expenditure and pay salaries to their employees.

Speaking at a press conference on Monday, Devi Shetty, cardiac surgeon and founder of Narayana Health, said: “At least now the government will be aware of the health industry and give us the payment that is due, as well as the realistic tariffs. As of now, we will continue the scheme but after first week of March we will take a decision and stop cashless treatment,” he said.

He said that they would give the governments a month’s time before suspending the service.

A press release by the hospital managements alleged that the four insurance companies are dictating the reimbursement, which is less than what is incurred by the hospitals to render the services.

R. Ravindra, president of Private Hospitals and Nursing Homes’ Association, said: “ECHS is for the armed forces. Every month, a certain amount of their salary is being cut for the health insurance, under which their family has to be covered. Thus, there is a special rate for them. The government has so much money but still hesitates to pay it to us.”

The Indian Medical Association, Association of Healthcare Providers India, Federation of Healthcare Associations Karnataka, and Private Hospitals and Nursing Homes’ Association have been negotiating with the bureaucracy for the early release of the dues.

‘T&C not honoured’

The terms and conditions that both the governments and hospitals had agreed upon were not being honoured, the doctors alleged. They said that private hospitals are only able to recover 40% of the amount incurred during treatment.

“We believe that we shouldn’t cause trouble the patients, and that we can come up with a viable solution in their interest,” said H. Sudarshan Ballal, director of Manipal Institute of Nephrology and Urology, the chairman of the Medical Advisory Board of Manipal Hospitals Group, and Senate Member of Manipal University.

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