Private hospitals in J&K to suspend Ayushmaan Bharat services due to ‘non-payment of dues’ by IFFCO Tokio

SRINAGAR: Private hospitals and dialysis centers across Jammu and Kashmir have announced the suspension of medical services under the Ayushmaan Bharat scheme (Golden Card) starting from Sunday, September 2, 2024. This decision has been taken due to the non-payment of dues by IFFCO Tokio, the insurance company responsible for processing the claims under the scheme. The outstanding amount, which has not been paid for the last six months, totals approximately Rs 160 crores, leading to significant financial strain on the hospitals’ resources.
The Hospital Association of Jammu and Kashmir recently issued an appeal expressing regret to the general public about their inability to continue offering services under the Ayushmaan Bharat scheme beyond the specified date unless the payments are released. The association also highlighted that their distributors and suppliers, who had been supporting them on credit, have refused to extend further credit beyond this date.
The association in a statement said, “It’s pertinent to mention that the Hon’ble High Court had directed the insurance company IFFCO Tokio, in the larger public interest, ‘to continue with the existing arrangement as per the terms & conditions of the contract agreement.’ However, unfortunately, they did not comply with the court orders, which has forced the hospitals to suspend the services from September 2.”
Despite a written communication from the State Health Agency to IFFCO Tokio, urging compliance with the court orders, the insurance company has failed to release the funds, resulting in the current situation.
The association emphasized their commitment to the Ayushmaan Bharat scheme and their dedication to providing the best possible care to all patients. However, they stated that until the funds are released and their suppliers and creditors resume their services, they will only be able to offer medical services on a cash basis.

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