Private Hospitals in Hyderabad Refuse to Join New EHS Scheme Over Unviable Rates
A new state government initiative, the Employee Health Scheme (EHS), is facing significant hurdles in Hyderabad as private hospitals, represented by the Telangana Network Hospitals Association (TANHA), have declined to offer services under the proposed program. This refusal stems primarily from concerns over financially unviable package rates, which hospitals argue are too low to sustain operations.
TANHA, whose member hospitals provide a substantial 70% to 80% of healthcare services under the existing state-run EHS in Telangana, has declared that the proposed new scheme is financially unsustainable. The association explicitly stated that its hospitals will not participate if the scheme is implemented with the revised Central Government Health Scheme (CGHS) tariffs. They contend that these proposed package rates are considerably lower than those offered under the current Aarogyasri scheme and the previous EHS, rendering the new scheme economically unfeasible for healthcare providers.
Key facts:
| Aspect | Detail |
|---|---|
| Scheme Name | New Employee Health Scheme (EHS) / Employee Health Care Trust (EHCT) |
| Affected Group | Telangana government employees, pensioners, and dependants |
| Hospitals Involved | Private hospitals under Telangana Network Hospitals Association (TANHA) |
| Primary Reason for Refusal | Financially unviable CGHS-based package rates |
Meeting with EHCT Officials
Dr. Vaddiraju Rakesh, State President of TANHA, along with other representatives from network hospitals, recently met with K. Hanumanthu, CEO of the Employee Health Care Trust (EHCT), to discuss these pressing issues. During the meeting, TANHA urged for a revision of treatment package rates. They advocated for a scientific costing methodology to determine new rates, rather than a direct adoption of the revised CGHS package rates which they deem inadequate.
Demands from Private Hospitals
Beyond the financial concerns, TANHA has put forward several other demands aimed at improving the operational framework and sustainability of the EHS. They have requested the inclusion of at least 10 representatives from various medical specialties in all key committees. This is intended to ensure that network hospitals have a voice in policy decisions and can contribute to the swift resolution of operational challenges.
TANHA also highlighted the need for a robust, transparent, and time-bound grievance redressal mechanism within the new EHS/EHCT. This addresses a critical shortcoming identified in the previous EHS, where resolving complaints and disputes was often a protracted process. Furthermore, the association called for the immediate settlement of all outstanding payments from the previous EHS before the new scheme is launched.
Unresolved Issues and Future Implications
According to TANHA, these concerns have been repeatedly communicated to the EHCT CEO, the state government, and other senior health officials over the past two months. Despite continuous representations and follow-ups, the association notes that no concrete action has been taken to address their grievances.
TANHA emphasizes that resolving these issues before the implementation of the new scheme is crucial for its success and long-term viability. Failure to do so, they warn, risks repeating the deficiencies of the previous EHS, thereby compromising the objective of providing quality, accessible, and sustainable healthcare to Telangana government employees, pensioners, and their dependants. The current standoff could significantly impact thousands of government employees in Hyderabad and across Telangana who rely on such schemes for their healthcare needs.
Source: Telangana Today – https://telanganatoday.com/state-governments-new-ehs-scheme-hits-roadblock-as-private-hospitals-refuse-to-join