Telangana Aarogyasri network hospitals warn of opting out of new EHS over revised CGHS tariffs

The Telangana Aarogyasri Network Hospitals Association has threatened to opt out of the state's new Employee Health Scheme due to unviable tariff rates. The association argues that the proposed CGHS-based rates are too low to sustain quality healthcare delivery.
Why it matters
The dispute threatens the accessibility of healthcare for government employees and pensioners, highlighting the tension between cost-containment and service quality.
The Telangana Aarogyasri Network Hospitals Association (TANHA) has warned that its member hospitals will not participate in the proposed new Employee Health Scheme (EHS) if it is implemented with the revised Central Government Health Scheme (CGHS) package rates, stating that the proposed tariffs are financially unviable.
A delegation of TANHA, led by its president Dr. Vaddiraju Rakesh, met EHS Chief Executive Officer Z. Hanumant Kondiba and other senior officials to discuss the proposed scheme and the challenges network hospitals anticipate in providing healthcare services to government employees, pensioners and their dependents.
According to the association, the revised CGHS package rates proposed under the new scheme are lower than the existing Aarogyasri and previous EHS package rates. “Adopting these rates would make it difficult for hospitals to sustainably deliver quality healthcare,” they said.
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