Srinagar, June 16: Private hospital owners in Kashmir have warned that they may withdraw from the government’s SEHAT health insurance scheme if pending payments are not cleared, citing mounting financial pressure and operational difficulties.

The Social Endeavour for Health and Telemedicine (SEHAT) scheme, launched in 2020, provides free healthcare coverage to all domiciles of Jammu and Kashmir across empanelled government and private hospitals. While government hospitals reportedly receive payments without delay, private hospitals and dialysis centres say reimbursements have been pending for an extended period.
According to the Private Hospitals and Dialysis Centres Association (JKPHDA), the government owes them over ₹250 crore accumulated over the past two years. The association has warned that services under the scheme may be withdrawn from July 1 if dues are not cleared.
Hospital representatives said the delays are affecting critical healthcare services such as dialysis, ICU care, surgeries, cardiac procedures, oncology treatments, and trauma care. They also cited rising costs of medicines, medical consumables, and imported equipment, which are further straining their operations.
Responding to the concerns, Health and Medical Education Minister Sakina Itoo acknowledged the delay in payments, stating that the SEHAT scheme is fully funded by the Union Territory administration and that efforts are underway to clear outstanding liabilities. However, she cautioned that withdrawal from the scheme could impact patient care.
Officials said SEHAT covers nearly 20 lakh families, while over 5.97 lakh vulnerable families are also covered under the Ayushman Bharat PM-JAY scheme in the Union Territory. The SEHAT scheme is entirely funded by the UT government, unlike PM-JAY, which has a Centre–State funding structure.
Private hospital operators said smaller healthcare facilities and dialysis centres are the worst affected, as they rely heavily on scheme reimbursements to maintain services and pay staff salaries. Some also pointed out that delays in claims processing and lack of interest payments on overdue amounts have worsened financial stress.
This is not the first instance of such tensions, as similar payment disputes in the past have disrupted services and triggered protests from patients dependent on listed hospitals for essential treatments.
Healthcare experts have noted that timely reimbursement is critical for sustaining public-private partnerships in healthcare delivery, especially under large-scale insurance-backed schemes aimed at providing universal access to treatment.