New Delhi, July 19 -- The National Health Authority (NHA) has taken strict action against 2,842 hospitals for fraudulent practices under the government's flagship public health insurance scheme, imposing a penalty of Rs.114.06 crore.

The penal action was taken during the last financial year as part of the National Anti-Fraud Unit's (NAFU) constant enforcement efforts under the National Health Authority. NAFU identified suspicious insurance claims under Ayushman Bharat and prevented the release of Rs.678.47 crore, according to two officials and a document reviewed by Mint.

The authority de-empanelled 2,003 hospitals, suspended 839 facilities, and imposed penalties of Rs.114.06 crore on non-compliant providers.

According to the NHA's ann...