Mon Apr 07 22:14:58 UTC 2025: **Andhra Pradesh Government Releases ₹500 Crore to Settle Hospital Dues, Resuming Cashless Healthcare Services**

VIJAYAWADA, April 8, 2025 – The Andhra Pradesh government has released ₹500 crore to address pending payments owed to hospitals participating in the NTR Vaidya Seva Network. The release follows a late-night meeting between Chief Minister N. Chandrababu Naidu and representatives of the Association of Healthcare Providers of Andhra Pradesh (ASHA). Cashless healthcare services, which had been suspended on April 7th due to unpaid dues totaling approximately ₹3,500 crore, have resumed as a result.

The Chief Minister acknowledged the state’s challenging financial situation but emphasized the critical role of hospitals. He assured ASHA that clearing the remaining dues is a top priority and promised a follow-up meeting to discuss further concerns, including future payment schedules and operational issues. While ASHA expressed that the released amount is insufficient to cover the full debt, they agreed to reinstate services based on the Chief Minister’s assurances.

The outstanding debt accumulated from a previous government, with ₹2,200 crore in arrears at the time of the current administration’s formation last year. A previous release of ₹300 crore had been made last week. Hospitals had notified the government of their intention to halt services in early March due to mounting financial strain. The resumption of cashless services, including emergency care, is expected to provide significant relief to the public.

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