Gujarat Hospital systematically marked all patient files as “emergency” to accelerate approvals for medical procedures under the Pradhan Mantri Jan Arogya Yojana (PM-JAY), the crime branch’s investigation into the angioplasty deaths has revealed. This misuse of the “emergency” tag allowed the hospital to bypass thorough scrutiny and fast-track pre-authorizations for treatments.
According to crime branch sources, PM-JAY officials admitted that due to the high volume of daily applications, they relied on the “emergency” designation to grant approvals quickly, enabling hospitals like Khyati to exploit the system.
According to crime branch sources, PM-JAY officials admitted that they did not have the time to thoroughly scrutinize each application and instead relied on the “emergency” tag to quickly grant pre-authorization, allowing the hospital to proceed with treatments without delays.

Investigators found that hospital authorities exploited the system, aware that PM-JAY officials processed between 1,300 to 4,000 “emergency” applications daily, enabling them to bypass detailed reviews.
The crime branch has questioned several PM-JAY officials suspected of being complicit in approving claims filed by Khyati Hospital. To avoid scrutiny from unfamiliar PM-JAY personnel, the hospital authorities allegedly offered bribes and labeled their files as “emergency” to bypass the standard review process. This ensured swift approvals without delays, a crime branch officer revealed.
The ongoing investigation into the PM-JAY scam has also brought four other major hospitals under scrutiny, sources confirmed.
In response to the scandal, the state government has implemented new standard operating procedures (SOPs) for PM-JAY claims and increased the workforce of the PM-JAY section from 60 to 180 staff members. So far, three FIRs have been registered in the Khyati Hospital case, and eight individuals have been arrested. On Dec 15,2024, the hospital’s director, Rajshree Patel, was remanded to 10 days in police custody.
Meanwhile, the hospital’s owner, Kartik Patel, fled to New Zealand following the incident and was last traced to Dubai.
Over the past three years, Khyati Hospital organized medical camps in 69 villages across the state, conducting health check-ups for 5,637 people. Between September 1, 2021, and October 28, 2024, the hospital treated 8,534 patients, of which 3,842 were beneficiaries of government healthcare schemes. The crime branch reported that 112 of these beneficiaries tragically died during or after treatment.
