As if the death of two persons due to botched angioplasty procedures under Pradhan Mantri Jan Arogya Yojana (PM-JAY) at Ahmedabad-based Khyati Multispeciality Hospital in November was not a shocker, it has now emerged that private hospitals in Gujarat carried out “treatment” on 47 deceased patients to procure money under the scheme.
According to the CAG Report, 47 deceased individuals were fraudulently recorded as recipients of treatment under the PM-JAY, with 51 claims filed against their names, resulting in payouts of Rs 18 lakh to private hospitals.
According to reports emerging, the Gujarat Health Department’s PM-JAY Authority was scrutinised for its lack of transparency. What is more alarming is that when asked about the hospitals involved and the actions taken, the authority reportedly admitted it had little information.
Despite repeated claims by the Gujarat government to crack down on medical malpractices, including the recent review of the PM-JAY-Maa card scheme, systemic gaps persist. During this review, state officials vowed “zero tolerance” for criminal activities by hospitals and doctors and promised to strengthen the State Anti-Fraud Unit.
However, the revelations in the Khyati Hospital case suggest these measures may not have been effectively implemented.
Further investigations revealed instances where payments were issued to hospitals for treating deceased patients, highlighting the alarming misuse of the PM-JAY scheme. This scandal has prompted demands for stricter enforcement against rogue private hospitals exploiting the government’s flagship healthcare programme.
On Tuesday, Gujarat Congress president and Rajya Sabha MP Shaktisinh Gohil demanded a CBI inquiry into the death of two patients at the Khyati Hospital.
Speaking during the Zero Hour in the Parliament, he said that the inquiry should be supervised by an independent judiciary.
“Model State” Compared to Other States
While Gujarat’s Health Department claims it has taken some action, the scale of suspensions in neighbouring states paints a contrasting picture.
Between the financial years 2018-19 and 2024-25, Gujarat suspended only five hospitals, including Dharmanand Hospital, Neelkanth Hospital and Sterling Hospital, for irregularities under PM-JAY.
In comparison, 479 hospitals were suspended in Maharashtra, 439 in Madhya Pradesh, 419 in Uttar Pradesh and 246 in Andhra Pradesh.
These figures have led to speculation that either Gujarat’s hospitals are exceptionally compliant or widespread irregularities are being concealed by the state’s health department.
The CAG report underscores the glaring flaws in the PM-JAY scheme’s implementation in Gujarat, including expedited approvals by Ayushman Yojana officials, sometimes granted within minutes of a patient’s admission.
Over the past five years, the central government has allocated Rs 67,662 crore to Gujarat’s healthcare under the Ayushman Yojana. A total of 2,675 hospitals in the state have been empanelled under the scheme.
However, the revelations of the Khyati Hospital scandal cast a shadow over the integrity of the system, prompting calls for a comprehensive audit and stringent corrective measures.
Crime Branch’s Probe into Khyati Incident
On November 4, the Crime Branch arrested Sanjay Patodia, one of the key accused in the Khyati Hospital scam. Patodia’s anticipatory bail application was rejected by the court, leading to his apprehension.
Six others were earlier arrested in connection with the case. Khyati Hospital’s Director Kartik Patel is still at large.
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