CGHS Empanelled hospitals refuse cashless treatment as dues pile up

Private hospitals treating central government employees under the Central Government Health Scheme (CGHS) have begun refusing them the cashless service after over Rs. 1,000 crore in outstanding payments accumulated.

According to the Association of Healthcare Providers in India (AHPI), the Central government did not clear payment even after the health ministry informed hospitals at a meeting on May 12, 2022, that it would do so.

The CGHS covers nearly 40 million people, including active and retired federal servants. It provides treatment at low monthly rates through CGHS wellness clinics and private hospitals and diagnostic facilities with which it has contracted.

According to AHPI, approximately Rs. 1,000 crore in CGHS dues are overdue; three hospitals, Max, Fortis, and Medanta, have Rs. 400 crore in outstanding dues.

"More than fifty per cent of CGHS recipients, including all IAS officers, reside in Delhi-NCR. Surprisingly, despite holding the position of Additional Secretary, the CGHS-DG is incapable of resolving minor concerns with overdue payments. Dr. Girdhar Gyani, director-general of the American Hospital Providers' Association (AHPI), remarked, "They threaten hospitals with action when they discuss ending cashless service, yet do not accept responsibility for timely payments."

Gyani stated that hospitals are compelled to halt cashless transactions since their financial viability is at risk, adding that they continue to treat civil personnel at CGHS rates upon receipt of cash.

Hospitals have been refusing to accommodate CGHS cardholders under the pretence of lack of room.