As was anticipated and warned, the private healthcare industry is showing its true colours and indulging in supplier ‘hold-up’ and increasing the costs.

TNN | Apr 4, 2013,

HYDERABAD: Private hospitals in the city will pull the plug on the state’s flagship Aarogyasri scheme from May 3 after the government refused to accept a minimum 30% hike on the existing tariffs and said henceforth they would only admit patients who can be discharged before the deadline.

If private hospitals go ahead with their plans, thousands of poor people will be denied quality care in top private hospitals in Hyderabad and elsewhere in the state, and is likely to force the government to take action.

About 250 private hospitals in the state treat about 2 lakh patients annually under the Aarogyasri scheme for the 938 listed ailments and diseases.

“It is a sad decision but we are not in a position to carry the burden of the scheme anymore,” said Dr B Bhaskar Rao, president, ASHA.

“Since the scheme’s inception in 2007, costs have gone up steeply but the government is still reluctant to revise the tariffs. Initially, we were told that 28% of the population falls under BPL and will be covered under the scheme, but the fact is 82% of the population is eligible to avail this scheme,” he said.

“We have been requesting the government for a revision since last two years, but nothing has been done.”

In another development, the AP Private Hospitals and Nursing Homes Association (APNA) and AP Specialty Hospitals Association (ASHA), served a notice to the CEO of Aarogyasri trust, demanding a minimum 65% hike in the tariffs, over and above the revised tariffs for healthinsurance scheme for state government employees and their dependants for twin sharing of rooms.They also demanded a 100% hike over and above the revised tariffs for single private rooms. The notice comes at a time when the state government is planning to launch the scheme for government employees on the lines of Aarogyasri from Ugadi.