The Jammu and Kashmir Government is set to release overdue payments to public and private hospitals empanelled under the Ayushman Bharat-PradhanMantri Jan ArogyaYojana (AB-PMJAY) SEHAT Scheme starting Saturday, October 5. This decision follows a prolonged financial strain on healthcare providers due to delayed payments linked to a contractual dispute.
In early September, private hospitals and dialysis centers across the Union Territory suspended services for ten days after the insurance provider, IFFCO-TOKIO, failed to comply with a High Court order mandating continuity of services under the existing contract. IFFCO-TOKIO, which ceased its involvement in the scheme on March 15, 2024, has yet to settle payments totaling approximately Rs 170 crore, leaving empanelled healthcare providers financially stressed for the past seven months.
State Health Agency (SHA) CEO Sanjiv M. Gadkar confirmed that the Health and Medical Education Department would directly release funds to both government and private hospitals, marking the first time payments under the PMJAY scheme are being disbursed directly by the department. He emphasized the government’s commitment to ensuring quality healthcare for all residents of Jammu and Kashmir.
The dispute began when IFFCO-TOKIO, citing financial losses, sought to exit the scheme in November 2023, well before its contract’s scheduled end in March 2025. The SHA subsequently approached the High Court, which ordered the insurer to honor its contract until the expiry date. The matter remains sub judice, and payments are now being disbursed independently by the Health Department pending a judicial resolution.
The AB-PMJAY SEHAT Scheme covers over 8.5 million beneficiaries in Jammu and Kashmir, with 253 hospitals—including 120 public and 133 private—empanelled across the region. Initially launched with Bajaj Allianz General Insurance Company Limited in 2022, the scheme transitioned to IFFCO-TOKIO, which now faces criticism for its handling of the contract.
As the financial relief process begins, the government aims to alleviate the strain on healthcare facilities and restore full service access for beneficiaries, ensuring continuity of medical care amid ongoing legal proceedings.
