GOVERNMENT OF ANDHRA PRADESH

ABSRACT
Andhra Pradesh Integrated Medical Attendance Rules, 1972 – Guidelines for recognition of
Private hospitals as referral hospitals for the purpose of treatment to State Government
employees, retired pensioners, and their dependents, M.L.As, Ex.-MLAs and other categories
of persons as per said rules – Prescribing Memorandum of Understanding – Orders – Issued.
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HEALTH MEDICAL AND FAMILY WELFARE (K1) DEPARTMENT
G.O.Ms.No.477 Dated the 30th August, 2005
Read the following:
1. G.O.Ms.No.162, HM&FW(K1) Department, dt.23-5-2005.
2. From the DME, A.P., Hyd., Lr.Rc.No.9626/MA-A/05, dt.4-7-2005.
****
ORDER:
In the G.O. first read above, Government have issued orders framing guidelines for
recognition of Private Hospitals as referral hospitals for the purpose of treatment to State
Government employees, Retired pensioners and their dependents, Family
pensioners, M.L.As, Ex-M.L.As and other category of persons mentioned in Andhra Pradesh
Integrated Medical Attendance Rules, 1972. One of the conditions prescribed therein is to
entering Memorandum of Understanding (M.O.U.) by the Director of Medical Education
with the concerned Private hospitals seeking to come under this scheme.

2. In the letter second read above, the Director of Medical Education has submitted draft
Memorandum of Understanding for the approval of the Government.

3. Government after careful examination of the matter hereby prescribe the format of
Memorandum of Understanding to be entered by the Private Hospitals with the Director of
Medical Education, A.P., Hyderabad in terms of the orders issued in G.O.Ms.No.162,
HM&FW(K1) Department, dt.23-5-2005, as specified in the Annexure to this order.

4. The Director of Medical Education shall take necessary action in the matter
accordingly.

5. This order issues with the concurrence of Finance Department vide their
U.O.No.22215/501/A2/Exp-HM&FW-I/2005, dt.25-8-2005.

(BY ORDER AND IN THE NAME OF THE GOVERNOR OF ANDHRA

PRADESH)
DR. I.V.SUBBA RAO
PRINCIPAL SECRETARY TO GOVERNMENT
To
The Director of Medical Education, A.P. Hyderabad
All Heads of the Departments under the control of HM&FW Department.
The Director, Nizam’s Institute of Medical Sciences, A.P. Hyderabad.
The Director, Sri Venkateswara Institute of Medical Sciences, Tirupati.
The Secretary, Indian Medical Association, Hyderabad.
(through the DME, A.P., Hyderabad.)
The Secretary, A.P. Nursing Homes Association, Hyderabad.
(through the DME, A.P., Hyderabad.)
The Commissioner of Social Welfare, Masabtank, A.P., Hyderabad.
The Commissioner of Tribal Welfare, Masabtank, A.P., Hyderabad.
The Commissioner of B.C. Welfare, Masabtank, A.P., Hyderabad.
The Secretary, A.P. Social Welfare Residential Schools Society (Regd),
S.W. Office Complex, Masabtank, Hyderabad-28.
All District Collectors in the State.
All the Superintendents of Government Teaching Hospitals in the State.
Copy to:
The Registrar, High Court of Andhra Pradesh, Hyderabad.
The Registrar, A.P. Administrative Tribunal, Hyderabad.
The Pay and Accounts Officer, Hyderabad.
The Accountant General, (A&E), A.P., Hyderabad.
The Accountant General (Audit), A.P., Hyderabad.
The Finance (Exp. HM&FW.I) Department.
The Law (E) Department.
The General Administration (SC-X) Department.
The General Administration (SR/Poll.) Department.
Social Welfare Department
Social Welfare (T.W.) Department
The HM&FW (O.P.) Department.
The Special Secretary to C.M.
The P.S. to Minister (Health)
// FORWARDED :: BY ORDER //
SECTION OFFICER
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ANNEXURE TO G.O.Ms.No.477,
HEALTH, MEDICAL & FAMILY WELFARE (K1) DEPARTMENT,
DATED 30-08-2005
****

Memorandum of Understanding between the Government of Andhra Pradesh Represented by

Director of Medical Education and
…………………………………………………………………………………………
(NAME OF HOSPITAL)
For recognised as referral hospital to treat the State Government Employees both in service
and Retired and their dependents for reimbursement purpose.

This Memorandum of Understanding is made on this__________ day of 2005 by and

between the Director of Medical Education on behalf of Government of Andhra Pradesh who
shall be the 1stparty and _________ (name of the Hospital, Corporate bodies/Firm/Trust full
address), ___________________who shall agree to be 2nd party under which the
Hospital/Institution shall under take the treatment of State Government Employees and their
dependents etc., and other categories of persons as per Andhra Pradesh Integrated Medical
Attendance Rules, 1972;
2. Whereas _________________________________ (name of Hospital) has applied for
recognition under revised Andhra Pradesh Integrated Medical Attendance Rules as per
(G.O.Ms.No.162, H.M.&F.W.(K1)Deptt.,dt.23-5-05) for treatment of State Government
Employees and their Dependents etc.,

3. And whereas the Government of Andhra Pradesh represented by Director of Medical

Education had vide its G.O.Ms.No.162, HM&FW(K1)Deptt.,dt.23-5-2005 extended
recognition of _____________________ (name of Hospital) under revised Andhra Pradesh
Integrated Medical Attendance Rules for treatment of State Government Employees subject
to the conditions that the schedule of charges for treatment of State Government employees
shall be regularised as per schedule of approved charges of Central Government Health
Scheme, Hyderabad as per G.O.Ms.No.74, HM&FW(K1)Deptt.,dt.15-03-2005 for treatment
given and also subject to the conditions that _____________________ (name of hospital)
would enter into an agreement with the Government of Andhra Pradesh to the effect that the
hospital will charge State Government employees at the rate so fixed as above by the
Government of Andhra Pradesh.

4. Now, therefore, the State Government and ___________________________ (name of

Hospital) hereby enter into an agreement to be mutually adhered to by both the parties whose
terms, conditions and applications are stated as below:-

(i). __________________________(name of hospital) is recognised under revised Andhra

Pradesh Integrated Medical Attendance Rules as per G.O.Ms.No.162,
HM&FW(K1)Department, dt.23-05-2005 for treatment of State Government Employees
subject to the conditions that:-

(i). ___________________________ (name of hospital) will charge A.P. State Government

Employees, their dependents, retired State Government pensioners and their dependents,
family pensioners,M.L.As and their family members and other categories of persons who are
entitled for free medical treatment as specified in Andhra Pradesh Integrated Medical
Attendance Rules, 1972, and as amended from time to time by Government. In the rates of
Private hospitals are less than the Central Government Health Scheme package rates or
Government rates as per annexure to the said G.O., the lowest rates of Private Hospitals shall
be accepted for scrutiny and payment, Referral of patients to the private hospital should be
from the Director, Nizam’s Institute of Medical Sciences (NIMS), Hyderabad, Director,
SriVenkateswara Institute of Medical Sciences (SVIMS), Tirupati, Superintendents of
Government Teaching Hospitals and Superintendents of district headquarters hospitals and
Area Hospitals in the State as per the schedule of approved rates of Central Government
Health Scheme, Hyderabad and for Dental and Ophthalmic rates as given in Annexure-I and
II of G.O.Ms.No.74, HM&FW(K1) Department, dt.15-03-2005.

(ii). ___________________________ (name of hospital) shall in no event, charge an amount

more than that agree to as per Central Government Health Scheme, Hyderabad rates and
Annexure-I and II of G.O.Ms.No.74, HM&FW(K1) Department, dt.15-03-2005 rates, from
any State Government Employees or the categories mentioned in condition (1) above, for a
period of 3 years from the date of signing of this Memorandum of Understanding.

(iii). _______________(name of hospital) shall not discriminate in any way against the State
Government Employees and above categories of persons mentioned in (i) above receiving
treatment in the hospital as compared to any other patient.
 (iv). The Hospital shall provide access to the financial and medical records for review by
medical and financial auditors of Sate Government as and when necessary.

(v). The hospital shall also submit a monthly return in the prescribed format to the Director
of Medical Education, A.P., Hyderabad, Below Poverty Line person, students of Government
welfare hospitals treated on monthly basis.

MONTHLY RETURN OF FREE TREATMENT

Sl.No. Name, Age Institution / Particulars Disease or Treatment Approximate

and address Officer who of reference Health provided value of
of the has referred Problem treatment
patient

(vi) The Hospital will pay damage to the beneficiaries, if any injury, loss of part or death
occurs due to gross negligence, or due to transfusion of improperly matched blood or any
such injuries occur as direct consequences of treatment in the hospital.

(vii) Any legal liability coming out of such services shall be dealt by the hospital and
at Hyderabad.

(viii) In case of any complaint of any mismanagement including overcharging by the hospital,
the State Government may, after enquiry, de-recognise ___________________________
(name of hospital) without any notice, and without any prejudice to any other action to be
taken as per law.

(ix) The Hospital should give free treatment for outpatient and inpatient services including
diagnostic, Surgical, Therapeutic and clinical services to the white card holders of the State of
Andhra Pradesh or person below poverty line (BPL) to a minimum of five percent (5%) of
bed strength (for inpatient services) of the hospital and provide free outpatient services to not
less than 10% of their out patient census. The hospital agrees to provide free treatment to
(……….) number of inpatients per month and ( ) number of outpatients per month. The
following types of diagnostic and therapeutic services shall be extended by the Hospital:-
1)
2)
3)
4)
5)

(x) The hospital is agreed to document the details of treatment properly in a register.

(xi). The Hospital should give free medical treatment for out patient and inpatient services
including diagnosis, surgical, therapeutic and clinical to students of Andhra Pradesh Social
Welfare Residential School, Tribal Welfare Residential Schools, B.C. Welfare Residential
Schools, S.T. Ashram Schools, S.T. Hostels, G.V.V.K. Schools and Maabadi Schools
whenever referred by the Principal of the said School/ any Government Medical Officer,
District Referral Committee/ District Social Welfare Officer or P.D., I.T.D.A. or
any authorised official to be notified by Government from time to time.
(xii). The private hospital should adopt at least two villages for providing better medical and
health services to the rural people. This includes free diagnostic services, conducting health
camps once in every month in the villages so adopted and submit a report to the Director of
Medical Education, A.P., Hyderabad about the details of health camp. The names of two
villages are ___________(specify names) _____________in
_____________ mandal of____________________ dist. In the above two adopted villages,
the hospital should take all steps to improve to overall health status of the population with
special focus in maternal and child health. The health camps will be checked by officials not
below the rank of Additional District Medical and Health Officer from time to time.

(xiii). The Hospital concerned should charge for all medical/surgical /diagnostic services
including major ailments of Heart Bypass surgery, Kidney transplantation,
Cancer, Neuro surgery etc., given by them under this scheme, as per the package rates
prescribed by Government of India, Ministry of Health and Family Welfare for Central
Government Health Scheme, Hyderabad and as adopted by the State Government in
G.O.Ms.No.74, H.M.& F.W.(K1)Department, dt.15-03-2005 or as may be prescribed by the
State Government or the Director of Medical Education from time to time. In respect of
dental treatments and Eye ailments, the package rates shall be as prescribed in
G.O.Ms.No.74, H.M.& F.W. (K1)Department, dated 15-3-2005 this Annexures I and II and
as amended from time to time.

(xiv). If any of the treatment rates are not available for any condition in Central
Government Health Scheme, Hyderabad list, the N.I.M.S. package rates shall be followed for
the same.

(xv) The hospital shall accept the Letter of Credit (L.O.C) issued by all the heads of
departments and regional and District Level Officers issued for treatment /operations to their
employees and their dependents for major ailments of CABG, Kidney Transplantations,
Cancer, Neuro Surgery Open Heart Surgery, Plastic Surgery etc., done secondary to accident
and burn cases, based on submission of estimation, and subject to ceiling limit as per the
package rates prescribed by the Government. The private hospitals should also accept letter
of credit (L.O.C.) from the Departments concerned for giving treatment and also to give
treatment on producing Identity card of the employee under emergency circumstances,
pending issue of letter of credit. The emergency conditions are also included the following:-

(a) Acute Coronary syndromes (Coronary Artery By-Pass

Graft/Percutenious Transiuminal Coronary Angioplasty) including Myocardial
Infarction, Unstable Angina, Ventricular arrhythmias Paroxysmal Supra
Ventricular Tachicardia, Cardiac Temponade, Acute Left Ventricular
Failure/Severe Colngestive Cardiac Failure, Accelerated hypertension complete heart
block and stroke adam attack, acute aortic dissection.
(b) Acute limb inschemia, rupture of aneurism, medical and surgical shock and peripheral
circulatory failure.
(c) Cerenbro vascular attack-strokes, sudden unconsciousness, head injury, respiratory
failure decompensated lung disease, cerebro manningeal infections, convulsions acute
paralysis, acute visual loss.
(d) Acute abdomen.
(e) Road traffic accidents/with injuries including fall
(f) Acute poisoning
 (g) Acute renal failure
(h) Acute abdomen in female including acute obstratical and gynaecological emergencies.
(i) Heart stroke.

At the time of discharge of pensioner and their dependents and family pensioners who were
admitted for treatment on Letter of Credit, it is for the hospital to collect the 10% of the
Central Government Health Scheme rates from them interms of orders issued in
Govt.Memo.No.7089/K1/2005-1, dt.14-6-2005

(xvi). The Hospital should submit for Scrutiny of all relevant Registers whenever the officials
from the Director of Medical Education or any persons nominated by the Government ask for
the same.

(xvii). The recognition so accorded will be valid for a period of three years only from the date
of recognition and the Hospital should submit application to the Director of Medical
Education, A.P., Hyderabad seeking renewal within three months before the date of the
expiry of the said period, together with a demand draft for Rs.30,000/- (Rupees thirty
thousand only) from any nationalized bank drawn in favour of Director of Medical
Education, A.P., Hyderabad towards application form and inspection fees.

(xviii). The hospital will be inspected in each quarter by a team of Government doctors to be
constituted by Director of Medical Education /Superintendent of Government Teaching
Hospital/ Superintendent of Government Head Quarter’s Hospital to ensure that the
diagnostic, surgical, therapeutic services and the overall quality of care in the private hospital
are satisfactory. The Director of Medical Education, A.P.,Hyderabad or any
officer authorised by Director of Medical Education will conduct inspection periodically to
verify and ensure that the said private hospital is complying with all the conditions as
stipulated above and verify the Registers and make appropriate recommendation to
Government through the Director of Medical Education for necessary action.

(xix) The Director of Medical Education shall constitute a team of medical experts and
Accounts Officers to do a random sample detailed scrutiny of the bills reimbursed
in favour of Government servants etc for the treatment given to Government employees
/retired employees and other categories of persons as per Andhra Pradesh Integrated Medical
Attendance Rules, 1972. Charted Accountants can be engaged by Director of Medical
Education for this purpose to satisfy that these cases are not over billed compared to others
and the services offered to Below Poverty Line persons. For this purpose, a yearly inspection
fee shall be Rs.30,000/- and collected from the hospital concerned.

(xx). The permission accorded to the hospital is liable for cancellation and such other
action as deemed fit, including de-recognition of the hospital and initiate criminal action as
per law against the hospital, whenever the State Government forms the opinion based on
inspection or enquiry into the allegations that the said private Hospital is not providing
treatment to the State Government employees/ retired employees and their dependents etc. as
stipulated above and violates the conditions mentioned therein, and indulge any irregularities
in respect of excess/ bogus claims, cheating the patient or Government or resorting to any
unlawful activities etc., after giving fifteen (15) days notice to the hospital and pass
appropriate orders, after considering the representation, if any, offered by the said Hospital.
(xxi). Neither Party may assign this M.O.U. or any interest therein without the written
consent of the other party. The laws of the Government of Andhra Pradesh shall govern the
construction and interpretation of this M.O.U.

(xxii). The original copy of this Memorandum of Understanding (M.O.U) shall be kept at
the office of First Party and a true copy shall be retained in the office of Second party signed
on ________________________________ day of _________________ 2005 at
_______________________________________.

In witness where of the afore mentioned points have affixed their signatures and seal
on the date, month and year first above written.

For and on behalf of the Government For and on behalf of the

of Andhra Pradesh Hospital

Name Name
Designation: Designation
Address:
Witness 1.
2.
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DR. I.V.SUBBA RAO
PRINCIPAL SECRETARY TO GOVERNMENT

// FORWARDED :: BY ORDER //