Hyderabad, September 20, 2025 – Aarogyasri services at network hospitals across Telangana have officially resumed, bringing an end to a week-long suspension that impacted thousands of economically vulnerable patients. The restoration of services follows late-night negotiations between the state government and protesting hospitals, leading to crucial assurances on pending dues and payment reforms.
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Key Developments at a Glance
- Services Resumed: All Aarogyasri, Employee Health Scheme (EHS), and Journalist Health Scheme (JHS) cashless treatments are active as of September 20.
- Strike Called Off: The Telangana Aarogyasri Network Hospitals Association (TANHA) ended its indefinite strike after government assurances.
- Government Assurance: Health Minister Damodar Raja Narasimha committed to clearing pending dues faster and increasing package rates.
- Immediate Relief: A payment of ₹100 crore was recently released, with monthly disbursements raised to ₹100 crore.
Background: Why the Services Were Suspended
The Telangana Aarogyasri Network Hospitals Association (TANHA), representing over 320 empanelled private hospitals, had indefinitely suspended cashless services under the state’s health schemes from September 16, 2025. The primary reason was long-pending government reimbursements estimated to be between ₹1,400 to ₹1,500 crore.
The association highlighted that while protocol mandates payment within 40 days, many hospitals, particularly small and medium-sized ones, faced delays exceeding 400 days, crippling their financial stability.
The Turning Point: Late-Night Talks
The deadlock was broken after emergency talks were held between Health Minister Damodar Raja Narasimha, senior health officials, including Aarogyasri CEO P. Uday Kumar, and representatives of TANHA on the night of September 19th.
Following the meeting, TANHA announced the decision to resume services. In a statement, the association said, “The minister personally assured us of resolving all the issues, both financial and non-financial… In view of the positive progress in our discussions and respecting the wishes of our Health Minister, we are resuming services across Telangana.”
TANHA also apologized to patients for the inconvenience caused during the suspension period.
Government’s Commitments and Reforms
The state government has made several key commitments to address the hospitals’ concerns:
- Faster Payments: The monthly release of funds has been increased from ₹90 crore to ₹100 crore.
- Enhanced Package Rates: The package rates for major medical procedures have been revised upwards, a move that will entail an additional outlay of ₹487 crore for the government.
- Payment Reforms: The government has pledged to implement longer-term reforms to ensure timely payments and improve the grievance redressal system.
Public Health Impact and Current Status
The suspension had disproportionately affected Below Poverty Line (BPL) patients and those in rural areas who rely entirely on the cashless coverage for critical medical treatments. Many were forced to seek care at overcrowded government facilities or incur out-of-pocket expenses.
With the resumption of services:
- Over 1,385 different medical procedures are once again available under the scheme.
- Pending surgeries that were postponed due to the strike have now restarted.
- Patients can access care at all network hospitals without financial burden.
Government sources clarified that the impact of the strike was not universal. They stated that at its peak, only about 62 out of 477 empanelled hospitals had completely halted services, with most large corporate hospitals continuing to treat Aarogyasri patients throughout the disruption.
As of today, September 20, 2025, healthcare accessibility for the state’s most vulnerable citizens has been fully restored, bringing relief to countless families.