Punjab hospital association backs state government’s Rs 10 lakh health cover scheme, but flags funding, payment risks

The Punjab Hospitals and Nursing Home Association (PHANA) Thursday welcomed the Punjab government’s decision to universalise the Mukh Mantri Sehat Bima Yojana (MMSBY) by providing Rs 10 lakh free health cover to every state resident, but it also raised concerns over budgetary allocation, payment timelines and the role of the insurance company.
PHANA leaders cautioned that once the scheme covers 100 per cent of the population, empanelled hospitals would become fully dependent on government reimbursements.
“Any delay in payments may severely impact hospital operations, including the timely payment of staff salaries. Therefore, PHANA stressed that the 15-day payment clause mentioned in the MoU must be strictly enforced, failing which hospitals may be compelled to suspend treatment for beneficiaries due to financial constraints,” said Dr Divyanshu Gupta, Honorary Secretary, PHANA.
The Association has also demanded adequate financial provisioning for the scheme. PHANA has submitted in writing that a minimum budget of Rs 2,500 crore per annum is required for smooth implementation, while the current allocation is around Rs 1,300 crore.
Concerns were also raised over the appointment of United India Insurance Company by the Punjab government. PHANA pointed out that the insurer had earlier defaulted on payments during the Bhagat Puran Singh Health Scheme under the SAD-BJP regime, with several cases still pending and dues yet to be cleared. The Association questioned that if funds are exhausted and the insurance company fails to make payments, clarity must be ensured on who will be responsible for hospital reimbursements.
Despite these concerns, PHANA welcomed the government’s move to expand the health scheme. The Association, which represents nearly 500 private hospitals across Punjab, said the decision aligns with World Health Organization (WHO) guidelines on Universal Health Coverage.
“PHANA primarily represents small and medium-sized empanelled hospitals, which form the backbone of the scheme. While most large corporate hospitals remain outside the ambit of the scheme, small and medium hospitals have consistently supported the government and ensured uninterrupted treatment to beneficiaries,” said Dr Gupta.
PHANA President Dr Vikas Chhabra said the scheme can significantly benefit the poor and underprivileged sections of society. “The scheme can be a boon for the poor and underprivileged population of Punjab. Universalisation of the scheme to cover the entire population reflects the government’s strong commitment towards Universal Health Coverage,” he stated.
Both the PHANA president and secretary praised Punjab Health Minister Dr Balbir Singh, Principal Health Secretary Kumar Rahul, and State Health Agency CEO Sanyam Aggarwal for maintaining continuous engagement with the Association during the formulation of the scheme.
PHANA leaders also said government officials have assured them that payments to hospitals will be regular and uninterrupted, which they described as critical for the sustainable implementation of the scheme.