The Association of Healthcare Providers India (AHPI) and Andhra Pradesh Super Speciality Hospitals Association have served an ultimatum to Central Government Health Scheme (CGHS) hospitals that they will not provide cashless treatment to CGHS patients from January 1, 2014 if the tariffs are not revised in accordance to the rising healthcare costs.

Over 400 super speciality hospitals from 23 states participated in the meeting in Hyderabad and stated that the rates, which were last revised in 2010, were not in tandem with the existing rates. Adding to the problem are delayed payments which get late by two to six months.

“Not only are the payments are delayed but they are also heavily reduced. The bills that we submit to them are devalued without any consultation. These conditions have made it extremely difficult for us to continue,” says Govind Hari, Member of the core committee of APHI.  

If these hospitals stop healthcare services it is going to affect around 45 lakh employees of the Central Government and public sector agencies who are benefiting from the insurance scheme.

The protesting hospital associations from all the States have given 3 months time to the Government to consider their demand to review the tariffs and revise the old rates in accordance to the rising healthcare costs.

According to the information, the APHI is planning to stop all cashless services at their hospitals, if the government doesn’t respond in the stipulated time frame of 3 months. However, they will continue to provide services on payment of cash and the employees can get reimbursed the same later.

During the meeting the members from various hospitals felt that the government is following the same old method for setting rates for various treatments. As the times have changed and new healthcare challenges have arisen, in view of these growing healthcare situations, the government should come out with a scientific method to set a proper package for different treatments in the hospitals.

“The government has not revised the tariff for various procedures for years, while the cost of operations has gone up significantly,” opined Dr Bhaskara Rao, chief executive officer of KIMS and President of the Andhra Pradesh Speciality Hospitals Association.

In view of the above problems, the APHI is planning to submit a memorandum to the Centre through CGHS authorities, demanding a hike in tariff for several packages.