Private hospitals to skip cashless RGHS
Jaipur, July 12 -- Private hospitals in Rajasthan will stop cashless treatment under the Rajasthan Government Health Scheme (RGHS) from July 15, citing unpaid dues and frequent policy changes, officials aware of the matter said on Friday.
The move affects over 1.1 million government employees and pensioners, they added.
However, health minister Gajendra Singh Khinvsar said the scheme was recently shifted to the health department and assured it will be strengthened, not stopped. Talks with hospitals are planned next week, he added.
The Rajasthan Association of Healthcare Associations (RAHA), representing 701 hospitals, said from the stated date, patients will have to pay for treatment upfront and later seek reimbursement directly from the government. The decision is expected to impact more than 1.1 million government employees, pensioners, and their families who depend on RGHS for medical care.
"All major associations of private hospitals in Rajasthan have unanimously decided that all private hospitals operating under the Rajasthan Government Health Scheme will provide services only under the reimbursement model. The arrangement will come into effect from 8am on July 15, 2025, said a statement issued by RAHA. "Beneficiaries will be required to claim reimbursement directly from the government after treatment, along with the necessary documents (as previously practiced)," it added.
Hospital associations said the decision to switch to a reimbursement-only model follows repeated grievances over administrative delays and policy uncertainty. They alleged that frequent rule changes, poor communication from third-party administrators, and lack of training led to errors for which hospitals were unfairly penalised. Despite nine formal submissions to senior government officials since May - including the health minister and the chief minister's office - no resolution has been reached, pushing many small and medium hospitals to the brink, they added.
The hospitals also highlighted that the number of RGHS beneficiaries has grown nearly sixfold with the inclusion of journalists, PSU staff, municipal employees, and contractual workers. While the RGHS budget stands at Rs.4,000 crore, Rs.2,000 crore is spent on OPD and medicines, and Rs.1,200 crore goes to government hospitals. This leaves only Rs.800 crore for private hospitals - similar to the allocation before 2021, they added.
The hospital bodies have urged the government to ensure timely payments, introduce standard documentation protocols, and consult stakeholders before changing policies.
The announcement has triggered political backlash. Former chief minister Ashok Gehlot criticised the BJP-led state government, calling it an example of administrative failure. "Every month, deductions are made from employees' salaries for RGHS, yet hospitals are not paid. The BJP is determined to destroy a public welfare scheme that once served lakhs," he said.
Gehlot urged immediate government intervention to prevent distress among government employees, pensioners, and their families.
He said RAHA announced, via a newspaper advertisement, that private hospitals will stop treatment under the RGHS scheme from July 15. The decision comes in the wake of non-payment of Rs.980 crore pending for the past seven months to 701 private hospitals, he added.
Reacting to the criticism. Khinvsar said that the RGHS scheme was recently handed over to the health department (earlier it was with the finance department) and that the officials are reviewing its implementation. "We have no intention of stopping the scheme. Our commitment is to strengthen RGHS just as we have expanded the MAA scheme," he said, adding that the government will meet the hospital associations next week to understand and address their concerns....
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