AP Public Healthcare Gets Another Shock: ASHA Suspends All OPD Services

ASHA President says ₹2,000 crore dues unpaid for over 18 months
Hospitals are under pressure to convert regular OPD into free services
ASHA raises concerns over patient feedback mechanism
Public healthcare in Andhra Pradesh continues to reel under strain during the TDP government’s tenure. In the latest setback, the Andhra Pradesh Speciality Hospital Association (ASHA) has announced the suspension of free outpatient (OPD) services under the NTR Vaidya Seva Trust scheme, effective September 16 (Tuesday).
In a strongly worded letter to Trust CEO Dinesh Kumar, ASHA President Dr. K. Vijay Kumar detailed the reasons behind the decision, citing long-pending dues, unsustainable pressures, and systemic exclusion of hospitals from key policy discussions.
Hospitals, he pointed out, have been awaiting clearance of dues exceeding ₹2,000 crore for more than 18 months. Despite repeated representations and multiple rounds of meetings, the government has failed to finalise a payment schedule.
It may be pointed out that this is the second such protest by ASHA this year. Earlier, this year, private hospitals suspended services under NTR Vaidya Seva over pending dues of Rs 3,000 crore.
In the letter, Dr. Kumar further noted that hospitals, already under severe financial stress, were being directed to convert regular OPD into free OPD and extend consultations and investigations at no cost.
“These requirements were neither part of our agreement nor financially viable for hospitals to absorb. It is deeply concerning that continued service despite financial pressure is being perceived as weakness,” he remarked.
The ASHA President also expressed alarm over the conduct of patient feedback and IVRS calls, which he said were based on leading and suggestive questions, thereby fostering mistrust between patients and hospitals. “This risks eroding the very trust on which the patient–hospital relationship depends,” he warned.
Equally troubling, he added, was the exclusion of hospitals from meaningful participation in discussions on rationalisation of prices, payment mechanisms, and systemic reforms.
“In this backdrop, and with due respect, we regret to inform you that hospitals are no longer in a position to continue providing free OPD services under NTR Vaidya Seva. Continuation of such services without resolution is unsustainable and beyond the scope of our original commitment,” the statement declared.
Even as ASHA pressed pause on free OPD services, Dr. Kumar stressed that the association remains committed to working with the government to resolve outstanding issues, ranging from dues clearance to price rationalization, within an equitable operational framework that benefits both patients and the state.
The crisis adds to the mounting criticism against the Chandrababu Naidu government, which is already facing flak over its controversial decision to hand over the development of 10 medical colleges to private players under the PPP (Public-Private Partnership) model.