Krishna Institute CMD says need to revise health scheme rates every 1-2 yrs
This story was originally published at 14:55 IST on 6 October 2025
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--Krishna Institute: Need to do more on central govt health services rates
--Krishna Institute: Delay in central govt health svcs bill payments a hurdle
--CONTEXT: Govt revises svcs rates under central govt health scheme in 15 yrs
--Krishna Institute:Need to revise central govt health scheme rate every 1-2 yrs
By Narayana Krishna
HYDERABAD – Krishna Institute of Medical Sciences Chairman and Managing Director B. Bhaskara Rao Monday said the recent revision in nearly 2,000 medical procedure rates under Central Government Health Services--popularly known as CGHS--is a positive move by the government and will be helpful for the sector but these rates need to be revised every 1-2 years.
Responding on the development, Rao said CGHS category patient flow is 1-2% of the total patient inflow across the healthcare services sector and a frequent review of the rates will help hospitals to come forward proactively to offer specialty services under this scheme.
Most hospital stocks rose Monday after the government decided to revise rates for nearly 2,000 medical procedures under the Central Government Health Services scheme, effective from Oct. 13. At 1411 IST, shares of Apollo Hospitals, Max Healthcare, Fortis Healthcare, Narayana Hrudayalaya, Krishna Institute and Global Health traded 2.1-6.7% higher.
The CGHS offers a comprehensive medical care to central government employees, pensioners, and their dependents living in CGHS-covered cities at the government and private empaneled or eligible hospitals. This also extends to Members of Parliament, judges of the Supreme Court and High Courts, certain constitutional authorities, and notified autonomous body employees.
State government employees and private-sector workers are not eligible. Beneficiaries can access outpatient and inpatient treatment, diagnostic services, and medicines through CGHS wellness centres and empanelled private hospitals, with pensioners entitled to cashless treatment at approved facilities.
The government has introduced a multi-dimensional rate structure that considers four key parameters--hospital accreditation, type of hospital, city classification, and the patient's ward entitlement, media reports said.
Rao said price revision alone is not going to encourage private sector hospitals but timely clearance of pending bills for the treatment extended by the private hospitals is crucial. He said the government should focus on the clearance of bills which is now taking over six months in some cases, which is affecting the cash flows of the hospitals. Issues in clearing bills are forcing the super specialty hospitals to stay away from the scheme, while small and medium-sized hospitals are the only option left for the patients. End.
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Akul Nishant Akhoury
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