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J&K Govt Orders Return of Unutilised SEHAT Funds, Launches Two-Year Audit of Health Insurance Scheme

KG News Desk by KG News Desk
July 11, 2026
in Jammu and Kashmir
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State Health Agency to Receive Idle Funds; Revenue-Sharing Model for Government Hospitals Under Examination

Jammu, July 11: The Jammu and Kashmir Government has initiated a major financial reform under the Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB PM-JAY) and SEHAT Scheme by directing all empanelled government hospitals to remit unutilised insurance funds to the State Health Agency (SHA). The administration has also ordered a comprehensive audit of the scheme covering the last two financial years.

As per official instructions, government hospitals participating in the SEHAT and AB PM-JAY programmes have been asked to transfer all unused balances from their dedicated scheme accounts to the State Health Agency. The step has been taken to improve financial transparency, strengthen accountability, and ensure optimal utilisation of funds allocated under the flagship health insurance initiative.

In addition to recalling the idle funds, the Government has ordered an extensive financial and administrative review of the scheme’s implementation over the previous two years. The audit will examine fund utilisation, insurance claims, hospital revenues, expenditure, and adherence to operational guidelines to assess the overall performance of the programme.

Officials said the exercise is aimed at enhancing governance, identifying shortcomings in financial management, and ensuring that public resources are utilised efficiently. The audit is also expected to recommend corrective measures to improve the functioning of the health insurance scheme across government healthcare institutions.

Meanwhile, the Government is also reviewing the existing revenue-sharing mechanism for empanelled public hospitals. A revised policy is under consideration to establish a more transparent and sustainable financial model that would strengthen hospital finances while improving healthcare delivery across Jammu and Kashmir.

The SEHAT Scheme, implemented in convergence with Ayushman Bharat PM-JAY, offers cashless health insurance benefits to eligible residents through a network of empanelled government and private hospitals. The latest decisions are expected to reinforce financial discipline, improve fund management, and further strengthen the implementation of the flagship healthcare programme across the Union Territory. (KNC)

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