The Central government owes around Rs 200 crore to private hospitals.
Private hospitals will no longer offer cashless treatment to government employees, even if they are covered under the central government's health service scheme.
The association representing private hospitals says it has no option but to take this harsh step. The reason: the Central government as of today, owes Rs 200 crore to private hospitals.
"This 200 crore is their data only. Actual amount will be more and pending for so much time, that is our only worry", says Dr Giridhar Gyani, Director General of the Association of Healthcare Providers (India).
Government employees however, find no solace in the justification.
"I think that it's a very inconsiderate move by the hospital management. When you are in this profession of medical care, you shouldn't have only money considerations. What will happen to retired persons? said Former Director General of Police, SC Tripathy.
"Filling forms, going to the doctor to get signatures, buying medicines, attesting cash memos, submitting them. There is no office facility available to retired people. How do you expect them to do it?" he added.
Mr Tripathy's wife had availed the cashless medical facility to treat her appendix and cataract in the past.
With more than 50 lakh serving government employees, 30 lakh pensioners and their families a total of close to 2.5 crore people are likely to be affected by the decision.
The AHPI says it is in discussion with the Central Government and has no qualms about resuming the service as long as the pending dues are cleared.
In the meantime, serving and retired government employees will first have to shell out hospital charges and later claim the amount from the government.