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Mandatory NABH Rule Can Push Private Hospitals Out of Ayushman Scheme in Madhya Pradesh

Hospital
Photo credit: Ground Report

The Madhya Pradesh Ayushman Bharat Niramayam ordered on 09 March 2026 that all empanelled private hospitals in Bhopal, Indore, Gwalior, and Jabalpur obtain Final-Level NABH (National Accreditation Board for Hospitals and Healthcare Providers) certification by March 31, or risk losing their place in the Ayushman scheme from April 1, 2026. 

“All hospitals currently empanelled under the MP Ayushman Bharat Niramayam scheme in Madhya Pradesh are now required to obtain Final-Level NABH certification,” Dr. Yogesh Tukaram Bharsat (IAS), CEO of the State Health Agency, Madhya Pradesh, told Ground Report. 

According to MP Ayushman Bharat Niramayam, Madhya Pradesh has 4.47 crore Ayushman cardholders, second only to Uttar Pradesh in the country.

The National Health Authority’s official website lists 436 private hospitals enrolled in the Ayushman scheme across these four cities. Of these, 174 have NABH accreditation. The remaining 262 do not, and under the current order, will lose their empanelment if they are not certified by March 31.

What Is NABH and Who Created It?

NABH, National Accreditation Board for Hospitals and Healthcare Providers, was set up by the Quality Council of India in 2006, a body created by the Central government to set and enforce quality standards across sectors. NABH checks hospitals against more than 600 standards, covering patient safety, building infrastructure, staff qualifications, treatment procedures, and record-keeping.

The certification has two stages. 

Entry-Level is the first, a basic compliance check that hospitals can clear with moderate effort and investment. Final-Level is the full certification. It requires a hospital to meet every standard, across every department, without exception. Getting from Entry-Level to Final-Level takes time, trained staff, and upgraded infrastructure.

Under the national Ayushman Bharat PM-JAY rules, NABH is not required for empanelment. It works as an incentive; hospitals with Entry-Level get 10 percent higher package rates, and those with Final-Level get 15 percent higher. MP-ABN has now gone beyond the national rules and made Final-Level NABH a condition for the empanelment in the scheme.

โ€œThis initiative ensures standardised clinical governance, safety protocols, and treatment outcome transparency across healthcare facilities. This mandate will empower beneficiaries of Ayushman Bharat Niramayam to receive care that meets or exceeds national benchmarks,โ€ Bharsat said.

Getting Final-Level NABH certification is not a quick process either. According to NABH’s own guidelines, a hospital first undergoes a pre-assessment, an initial inspection where NABH evaluators visit the facility and identify gaps. The Hospital then has three months to prepare for reassessment. If it is not ready within three months, the application is cancelled. If it clears that stage, the final assessment must be completed within six months of the pre-assessment. Miss that window too, and the hospital has to start the entire process from scratch.

From January 1, 2025, NABH moved to its 6th edition standards. Under these, hospitals must now have a dedicated Medication Safety Officer, use digital prescriptions, maintain stronger emergency care protocols, and track patient safety outcomes across every department.  

According toNational Health Authority NHA data, of the 901 private hospitals enrolled in the Ayushman scheme across Madhya Pradesh, among them only 290 have NABH accreditation.

Bhopal has the highest number of enrolled private hospitals in the Ayushman scheme among the four cities, 204 in total, of which 93 have NABH accreditation. But 71 have already been de-empanelled, removed from the scheme, and 19 suspended. According to NHA’s guidelines, hospitals can be de-empanelled for failing to meet infrastructure, staffing, or quality standards, or for fraud and abuse of the scheme. In Jabalpur, only 12 of the 42 enrolled private hospitals have NABH accreditation, and 31 have already been de-empanelled, nearly three out of every four.  

Fraud Problem Behind the Order

According to a written reply submitted by the Union Ministry of Health and Family Welfare in the Rajya Sabha on February 11, 2025, fraudulent or inadmissible claims worth โ‚น562.4 crore were detected under the scheme across India. 

State-wise data attached to that reply showed hospitals in Madhya Pradesh accounted for roughly โ‚น119 crore, nearly 21.2 percent of that total  โ‚น562.4 crore in flagged claims.

Union Minister of State for Health Prataprao Jadhav told the Rajya Sabha on August 19, 2025, that since the scheme began, 3,167 hospitals across India were found guilty of irregularities. Of these, 1,114 were de-empanelled, 1,504 were fined a total of โ‚น122 crore, and 549 were suspended. 

As per a media report, in April 2023, 36 private hospitals across Bhopal, Indore, Gwalior, and Jabalpur were de-empanelled for not following existing NABH standards or minimum bed-count rules: 17 in Bhopal, 12 in Indore, 5 in Gwalior, and 2 in Jabalpur.

Fewer Hospitals, More Patients

Bhopal, Indore, Gwalior, and Jabalpur host many of Madhya Pradeshโ€™s major hospitals and medical colleges. Patients from smaller districts are often referred to these cities for specialised surgeries, advanced diagnostics, and critical care.

If a large number of empanelled private hospitals lose their place in the scheme, the remaining hospitals will have to handle a patient load they are not built for.  

According to Dainik Bhaskar, the Madhya Pradesh Nursing Home Association and the Indian Medical Association (IMA) State Branch, Jabalpur, have both opposed the order. They say NABH is a voluntary accreditation, and making it mandatory is wrong. They point out that the Clinical Establishment Act and the National Health Authority have not made it compulsory.  As of February 11, 2026, 71.3 lakh people in Madhya Pradesh have used the Ayushman scheme for treatment, as per MP-ABN data.

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