Kashmir Impulse Desk

Srinagar, April 6

Private hospitals across Kashmir have said they will suspend free treatment under a government-backed health insurance program beginning April 15, citing more than Rs 300 crore in unpaid reimbursements.

The decision, announced by representatives of empaneled hospitals, threatens to disrupt access to care for thousands of patients who rely on the Ayushman Bharat Pradhan Mantri Jan Arogya Yojana-Sehat Scheme for cashless treatment, including dialysis, surgeries and other critical procedures.

Hospital officials said payments from the State Health Agency have been delayed for months, with some claims dating back to 2021. 

Despite repeated appeals to authorities, they said, the dues remain unsettled, placing mounting financial strain on providers.

“The situation has reached a breaking point,” a representative said, adding that suppliers of medicines and medical equipment had issued a deadline of April 15, after which deliveries could be halted because of unpaid bills.

Such a disruption, hospital administrators warned, could further undermine operations already under pressure. 

Many facilities have continued to provide treatment under the scheme despite growing liabilities, but say the prolonged delays have begun to affect staff salaries and routine functioning.

If payments are not released and supply chains are not restored, hospitals said they would stop treating patients under the programme’s ‘Golden Card,’ the mechanism that allows beneficiaries to access cashless services.

The move is likely to disproportionately affect lower-income patients, for whom the scheme serves as a primary means of accessing hospital care. 

Providers have urged the government to intervene urgently to clear the backlog and prevent a broader breakdown in healthcare services across the region.