Union Health Ministry Removes 2,359 Errant Hospitals from PM-JAY Network Following Fraud Audit

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In a major enforcement drive under the Ayushman Bharat-Pradhan Mantri Jan Arogya Yojana (AB-PMJAY), Union Health Minister J.P. Nadda informed Parliament that 2,359 hospitals have been de-empanelled and over 1,200 suspended for violating program guidelines. 

Demonstrating zero tolerance toward healthcare fraud, authorities have levied financial penalties totaling ₹328.49 crore and filed 29 First Information Reports (FIRs) against non-compliant healthcare facilities.

To preserve program integrity, the National Health Authority’s (NHA) National Anti-Fraud Unit utilizes Artificial Intelligence and Machine Learning mechanisms to identify irregular claims within 24 hours of submission. These automated triggers flag suspicious patterns, such as unauthorized billing, duplicate claims, inflated surgical charges, and identity misuse,enablingrigorous scrutiny before reimbursement. This proactive oversight successfully prevented ₹676.14 crore in fraudulent payouts as of July 31, 2026.

The nationwide crackdown underlines the government’s commitment to safeguarding public resources while maintaining equitable care for beneficiaries. In the 2025–26 fiscal year, AB-PMJAY issued 3.75 crore new Ayushman cards, authorized 2.74 crore hospital admissions, and empanelled 5,074 new facilities to maintain accessible, cashless healthcare for India’s vulnerable populations.

Written by: Pragna Biswas

Graphics by: Pramit Hazra

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