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Ahmedabad: In a significant move to safeguard the integrity of India’s flagship health insurance scheme, the Gujarat Health Department has suspended 21 hospitals from the Pradhan Mantri Jan Arogya Yojana (PMJAY) between April and June 2025. This decisive action comes amid heightened scrutiny following the high-profile Khyati Hospital scam and is part of the state government’s intensified efforts to enforce accountability and transparency under PMJAY.
Violations Spark Crackdown
The suspended hospitals face a range of serious allegations, including:
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Inflating medical bills
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Tampering with patient records
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Admitting patients referred from other facilities, violating PMJAY protocols
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Unnecessarily selecting high-cost treatment packages, particularly in neonatal care
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Operating without basic infrastructure, such as fire safety NOCs and CCTV in Neonatal Intensive Care Units
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Maintaining poor hygiene in operation theatres
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Running operations on floors lacking mandatory Building Use (BU) permissions
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Recording unusually high mortality rates, raising concerns about the quality of care
Some of the hospitals have been blacklisted for up to three years due to the gravity and recurrence of the violations2.
List of Suspended Hospitals
Prominent names among the suspended hospitals include:
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Christ Hospital and Gokul Hospital, Rajkot
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KP Sanghvi Hospital, Surat
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Aastha Hospital, Patan
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Dev Hospital, Chhota Udepur
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Ahmedabad Institute of Medical Services and Shaligram Multi-Speciality Hospital, Ahmedabad
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Rotary Medical and Research Centre, Gandhinagar
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Siddhi Vinayak Hospital, Tapi
Widespread Non-Compliance Exposed
Beyond the suspensions, routine inspections have revealed widespread non-adherence to PMJAY guidelines. Many hospitals failed to display required information boards detailing scheme benefits and neglected to register under the Clinical Establishments Act, despite this being compulsory. The enforcement action has also resulted in 11 doctors being suspended from PMJAY for their involvement in alleged malpractice.
The crackdown is directly linked to the Khyati Hospital case, where serious financial and operational violations prompted state authorities to ramp up hospital inspections. Recent court actions relating to this case have further strengthened oversight across the sector.
Disclaimer:
This article is based on news reports and press releases as of July 17, 2025. The list of suspended hospitals and details provided reflect official information available at the time of publishing. Investigations are ongoing within the Gujarat health system, and further actions may be taken by authorities. Readers are advised to consult state health department announcements for the latest updates and any changes to service eligibility under PMJAY.
