The ambitious free health insurance programme for all citizens of Jammu and Kashmir is facing a severe crisis. Private hospitals and dialysis centres empanelled under the Ayushman Bharat Scheme have announced their decision to stop treating patients under this scheme starting September 1, citing non-payment of Rs 300 crore dues since March. The decision comes as a significant blow to the healthcare system and potentially affects thousands of patients who rely on the scheme for their medical needs.

The outstanding dues, reportedly amounting to approximately Rs 300 crore have left these healthcare providers in a financial quandary. A spokesman for the affected hospitals and dialysis centres said, “We are left with no option other than to stop our services under the free insurance scheme. We have exhausted all our resources as our payments have been pending since March.

We have become defaulters of banks, our supplies, and employees, and it is not sustainable for us to continue.” The root cause of this crisis stems from a legal dispute between the government and IFFCO Tokio, the insurance company responsible for the scheme. “Despite orders from the State Health Agency to release payments for wrongfully rejected and deducted cases, IFFCO Tokio has reportedly not complied, exacerbating the financial strain on healthcare providers,” the spokesman said.

In a collective statement, the affected hospitals and dialysis centres expressed their regret saying: “We remain committe.