The Andhra Pradesh government has imposed fines totalling Rs 34.39 crore on 203 hospitals for violations linked to treatment provided under the NTR Vaidya Seva scheme between 2024-25 and 2026-27, while suspending or removing several hospitals from the state’s cashless healthcare network.
NTR Vaidya Seva Trust chief executive officer A. A. L. Padmavathi submitted a report on the action taken against hospitals to health minister Satya Kumar Yadav in Vijayawada on Saturday. The report detailed financial penalties and other measures taken against hospitals accused of failing to follow the scheme’s requirements.
According to the report, the Trust suspended 25 hospitals, stopped payments to 13 hospitals, delisted five hospitals and derecognised one hospital. These actions were taken in addition to the fines imposed on 203 hospitals.
The complaints examined by the Trust included hospitals collecting money from patients despite their coverage under the scheme, denying cashless treatment to eligible beneficiaries and delaying treatment. Other reported violations included failure to comply with healthcare norms and neglect of patients.
The NTR Vaidya Seva scheme is delivered through a network of around 1,000 private hospitals across Andhra Pradesh. The enforcement action therefore affects not only the hospitals concerned but also the functioning of the state’s publicly supported healthcare access system, in which private facilities provide treatment to eligible patients under prescribed scheme conditions.
The Trust is examining the complaints and related details, according to the report submitted to the health minister. The available report does not specify how much of the Rs 34.39 crore penalty has been recovered, the names of the hospitals involved, or whether patients affected by the alleged violations will receive refunds or other relief.
Padmavathi said the Trust was using artificial intelligence to verify treatment records and bills submitted under the scheme. The system is intended to identify lapses in treatment delivery and billing and support action against hospitals in accordance with the applicable norms.
The use of automated checks adds a technology layer to the Trust’s monitoring of a large provider network. However, the report does not provide details on the AI system’s operating criteria, the number of records examined, or whether the technology was responsible for identifying all 203 hospitals that faced fines.
The enforcement measures come as the Trust continues to examine complaints concerning cashless access, treatment delays and compliance with healthcare standards. The next steps identified in the report are the continued examination of complaints and related details, along with action against hospitals in accordance with NTR Vaidya Seva norms.
