₹1,000 Crore More Approved Through TBDA Mechanism to Clear Pending Dues
In a significant move to ease financial pressure on healthcare providers, the Andhra Pradesh government has released ₹501 crore to private hospitals empanelled under the NTR Vaidya Seva Trust to clear pending dues.
Alongside this, the state has also approved the disbursement of an additional ₹1,000 crore through the Tripartite Bill Discounting Agreement (TBDA) mechanism, aiming to settle long-standing payment backlogs.
Tripartite Agreement to Speed Up Payments
According to KVN Chakradhar Babu, Officer-in-Charge of the NTR Vaidya Seva Trust and Director of Secondary Health, the dues—amounting to nearly ₹1,000 crore—are being cleared through a tripartite agreement involving:
- Andhra Pradesh Power Finance Corporation
- NTR Vaidya Seva Trust
- Private hospital managements
Payments under this mechanism reportedly began last Monday, offering much-needed liquidity to hospitals.
278 Hospitals Receive Payments, More in Pipeline
So far, 278 hospitals have received ₹501 crore under the scheme. Out of 873 eligible hospitals:
- 531 hospitals applied for bill discounting
- 336 applications have been verified
- Remaining applications are under process
Officials stated that the phased disbursement aligns with the government’s commitment to clear outstanding dues and strengthen healthcare delivery.
Background: Hospitals Had Threatened to Suspend Free Services
Earlier, private hospitals under the Andhra Pradesh Speciality Hospital Association had warned of suspending free treatment services for economically weaker patients under the scheme.
This decision came in response to pending dues reportedly exceeding ₹3,000 crore. Hospitals had claimed that despite assurances, payments due since December 2025 had not been released, making it financially unviable to continue offering cashless treatments.
Relief for Healthcare Sector
The recent fund release and approval of additional payments are expected to:
- Stabilize hospital operations
- Ensure continuity of free healthcare services
- Restore trust between private providers and the government
The move is seen as a crucial step in maintaining uninterrupted healthcare access for thousands of beneficiaries under the state-run insurance scheme.
