Over 2,000 Hospitals Removed from Ayushman Bharat Scheme Due to Violations

Union Health Minister J.P. Nadda has announced that over 2,000 hospitals have been removed from the Ayushman Bharat scheme due to guideline violations. The government has implemented strict measures to combat fraud, including the use of AI to detect suspicious claims. With significant financial support provided to states, the scheme aims to ensure cashless health coverage for the underprivileged. Additionally, the creation of Ayushman Bharat Health Accounts is set to enhance the management of digital health records. This article delves into the actions taken and the progress made under this vital health initiative.
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Significant Actions Taken Against Hospitals Under Ayushman Bharat

On August 7, in a statement to the Lok Sabha, Union Health Minister J.P. Nadda revealed that as of May 31 this year, more than 2,000 hospitals have been removed from the Ayushman Bharat-PM Jan Arogya Yojana due to violations of its guidelines. Additionally, 1,200 hospitals have been suspended. Nadda provided this information in response to a written question, noting that 29 FIRs have been filed for breaches of the scheme's regulations, resulting in fines totaling ₹328.49 crore. He emphasized that a total of 2,359 hospitals have faced removal from the list due to these infractions.


Strict Measures Against Fraudulent Claims

The minister stated that the scheme adopts a zero-tolerance policy towards fraud. The National Anti-Fraud Unit, operating under the National Health Authority, employs an automated system based on artificial intelligence (AI) and machine learning to detect suspicious claims. These automated systems can identify unusual claim patterns within 24 hours of submission, including unauthorized billing, duplicate entries, inflated procedures, and misuse of patient identities. Claims deemed suspicious undergo verification before payment, ensuring that fraudulent claims are not compensated, which has led to savings of ₹676.14 crore by July 31, 2026.


Comprehensive Actions Against Non-Compliant Hospitals

In addition to suspending and removing hospitals, penalties and FIRs are also imposed on those violating the scheme's guidelines. The Ayushman Bharat scheme provides cashless health insurance coverage of ₹5 lakh per family annually for the bottom 40% of the population, facilitating access to secondary and tertiary hospitals. This initiative is being implemented across all states and union territories, with several states integrating it with their health insurance programs.


Progress and Financial Support for the Scheme

During the fiscal year 2025-26, 3.75 crore Ayushman cards were issued to eligible beneficiaries, with 2.74 crore hospital admissions approved and 5,074 hospitals added to the scheme. The central government allocated ₹8,438.27 crore to states and union territories for the implementation of this scheme throughout the year. Nadda clarified that the release of funds is demand-based, contingent on the utilization certificates and needs presented by the states and union territories.


Creation of Ayushman Bharat Health Accounts

In response to another query, Nadda mentioned that by July 31, 2026, a total of 95.99 crore Ayushman Bharat Health Accounts (ABHA) had been created nationwide, with 5.25 crore accounts established in Gujarat alone. He highlighted that ABHA is a crucial component of the Ayushman Bharat Digital Mission, providing citizens with a unique 14-digit number to securely store and manage their digital health records within the healthcare system.


Data Management for ABHA Accounts

The minister also informed the house that data related to the creation of ABHA accounts is not maintained based on parliamentary constituencies.