Ayushman Card: Important News for Ayushman Cardholders, Difficulties May Arise in Treatment..

Ayushman Bharat Yojana: Under the Central Government's Ayushman Bharat Yojana, poor and economically weaker families receive cashless health coverage of up to ₹5 lakh. The Central Government launched this scheme in 2018. While millions of people have availed of free medical treatment facilities under this scheme, media reports now claim that several major private hospitals are preparing to withdraw from this government initiative.

According to a report published in *ET*, the reasons for this could include low treatment rates, delayed payments, and price caps imposed by the government. Although no major hospital has yet openly declared that it is withdrawing from government schemes, companies such as Max Healthcare, Narayana Health, Fortis Healthcare, and Healthcare Global have acknowledged that they are facing financial losses and operational difficulties in running these programs. Typically, government schemes like CGHS (Central Government Health Scheme) and ECHS (Ex-Servicemen Contributory Health Scheme) account for approximately 25% of private hospitals' total revenue; however, according to the consulting firm Praxis Global Alliance, this share could drop to between 3% and 5% in the near future. Consequently, hospitals may choose to withdraw from certain schemes or limit the number of beds allocated to patients covered under these programs.

Specifically, the CGHS scheme is designed for Central Government employees and pensioners, whereas the ECHS caters to armed forces personnel and their families. Under both schemes, treatment rates are determined by the government—rates that hospitals now perceive as yielding low profit margins. Apollo Hospitals has refrained from making any explicit statements regarding these schemes, as this segment constitutes a relatively small portion of their overall business. According to the company, 83% of its revenue in the third quarter of FY26 was derived from patients covered by insurance or making cash payments, implying that revenue generated through government schemes remained negligible.

Receiving low remuneration for medical treatment.
Delayed payments from the government.
The report further indicates that private hospitals are now attempting to rebalance their revenue mix. They are prioritizing patients and payers who facilitate quicker settlements, thereby ensuring the stability of the hospitals' liquidity position—specifically, their working capital. For the first time, Max Healthcare has explicitly disclosed the extent of the financial losses it is incurring due to the government's CGHS scheme. According to the company, its association with CGHS has impacted its revenue by approximately ₹200 crore. Under the agreement signed with CGHS, Max is required to offer a discount of up to 30% on chemotherapy drugs. The supply of drugs yielding a profit margin of less than 30% has been discontinued, while those with a profit margin exceeding 30% continue to be provided.

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