The Punjab government has assured the Punjab and Haryana High Court that it will settle all outstanding payments owed to private hospitals under the Ayushman Bharat scheme (up to December 31, 2024) by March 21.
This commitment was formally presented before the court by the Principal Secretary, Finance. However, the state government has reserved the right to raise further claims with the central government as per the scheme’s provisions.
Following this assurance, the Indian Medical Association (Punjab) and other petitioners decided not to pursue their case any further. However, they sought the court’s permission to revive the matter should the Punjab government fail to honor its commitment. A single-judge bench led by Justice Kuldeep Tiwari subsequently closed the case.
Background of the Case
A group of empanelled hospitals and medical institutions under Ayushman Bharat had approached the high court in September 2023, demanding the release of their long-pending dues. These hospitals, which provide treatment to patients under the scheme, regularly submit their reimbursement claims to the State Health Agency (SHA), Punjab.
During the proceedings, the Punjab government admitted that it owed hospitals over ₹500 crore as of December 18, 2022. However, the state failed to justify why these undisputed payments had not yet been released.
Centre’s Response
The central government clarified before the court that, under the Ayushman Bharat scheme, it is responsible for reimbursing 60% of medical bills, while the remaining 40% must be covered by the state government. The Centre informed the court that it had already disbursed ₹355.48 crore to Punjab for the financial year 2023-24.
However, the Centre alleged that the Punjab government had failed to release not only its own 40% share but had also misused the funds already provided by the central government.
With the state now formally committing to clear the dues by March 21, hospitals await the fulfillment of this promise, while the petitioners reserve the right to take further legal action if necessary.
