SRINAGAR: Jammu and Kashmir empanelled hospitals and dialysis centres will stop providing services under the Ayushman Bharat scheme from September 1 due to non-release of funds since March, Daily Excelsior reported.
The newspaper reported that the hospitals’ association met with the CEO of State Health Agency in April, who promised resolution by May.
However, after no payment was made, they submitted an application to the Chief Secretary on May 18, requesting funds by May 31, it reported.
Following a meeting with the Medical Education Department on May 31, assurances were given that the issue would be resolved soon.
The hospitals also submitted a letter to the DC Srinagar, highlighting the lack of funds, but received no response.
The non-release of approximately Rs 300 crore has caused financial strain on the hospitals.
The issue originated from a legal battle between the government and insurance company IFFCO Tokio, which delayed fund releases.
The hospitals will only offer cash-based services until the payments are released.
Top officials from the Medical Education Department stated that the matter is sub judice, and the court has reserved its order.
The hospitals are committed to the Ayushman Bharat Scheme but cannot continue services without funds.
Suppliers have refused to extend credit beyond August 31, forcing the hospitals to make this decision.