Aarogyasri Services to Be Suspended in Telangana from August 31 Over Pending Dues

Hyderabad, Telangana (August 22, 2025):

The Telangana Aarogyasri Network Hospitals Association (TANHA) has announced that all *Aarogyasri healthcare services across the state will be suspended from August 31, 2025, midnight. The association cited *pending dues of ₹1,400 crore from the government as the primary reason for this drastic step.

Why Are Services Being Halted?

According to TANHA, the state government failed to honor its commitment of setting up a committee to ensure timely payments to hospitals. The association also claimed that despite repeated assurances, outstanding bills remain unpaid, forcing hospitals into financial distress.

In addition to Aarogyasri, TANHA clarified that services under the Employees’ Health Scheme (EHS) and Journalists’ Health Scheme (JHS) will also be suspended until further notice.

Past Developments

Earlier this year, in January 2025, network hospitals had already staged a protest by halting Aarogyasri services. The strike lasted ten days and was withdrawn after a meeting with Health Minister *C. Damodar Raja Narsimha. However, TANHA now argues that the government has failed to address the *core issues, leaving hospitals with no option but to strike again.

Key Issues Raised by TANHA

Speaking to the media, TANHA President Vaddiraju Rakesh highlighted eight major concerns, including:

  • Revision of hospital package rates under Aarogyasri.
  • Re-drafting of the MoU between Aarogyasri Healthcare Trust and hospitals.
  • Ensuring regular and timely payments.
  • Establishing a dispute resolution mechanism.
  • Avoiding unilateral government circulars without consultation.
  • Separation of Aarogyasri, Employees’ Health Scheme, and Journalists’ Health Scheme.
  • Priority-based payment processing for hospitals.
  • Cancellation of arbitrary deductions in reimbursement amounts.

He added that hospitals are struggling to sustain services without adequate financial support. TANHA has formally requested urgent meetings with the Health Minister and Chief Minister to resolve the crisis.

Public Impact

The suspension of Aarogyasri services is expected to affect *lakhs of patients across Telangana, particularly those from economically weaker sections who depend on the scheme for *critical treatments and surgeries. Healthcare experts warn that delays in resolving this standoff could severely burden both hospitals and patients.

Key Highlights

  • Aarogyasri services to stop in Telangana from August 31, 2025.
  • Hospitals demand release of ₹1,400 crore pending dues.
  • Services under EHS and JHS schemes also suspended.
  • Hospitals demand package revisions, timely payments, and dispute resolution mechanisms.
  • Earlier strike in January was withdrawn after government talks, but issues remain unresolved.