The decision was taken at a meeting of the Association, which reviewed the new rates announced by the CGHS authorities with effect from November 1.

Ruby Hall Clinic CEO Bomi Bhote, who is a member of the association, said that all the 28 members of the association have unanimously decided to withdraw credit facility to pensioners. "We are also sending a letter to the joint secretary in the Union ministry of health and family welfare, stating that the revised rates are grossly inadequate and unacceptable to us," he said, adding that all the PHA members would continue the withdrawal of credit facility until the issue is resolved.

Over 40,000 pensioners draw health benefits under the CGHS in Pune. The association had, with effect from September 1 this year, withdrawn credit facility to pensioners to protest against the revised but slashed CGHS rates, but later lifted the withdrawal following a meeting with Union health minister Anbumani Ramadoss.

"Ramadoss had promised that the new revised rates for Pune would be on a par with other metros," Bhote said, adding that the new rates announced by CGHS now "are as ridiculous as before."

The crisis started when the CGHS published a revised list on June 22, where it placed Pune alongside other 'A' class cities like Ahmedabad, Jaipur, Kanpur, Lucknow and Nagpur, rather than 'A-1' cities like Bangalore, Chennai, Hyderabad, Kolkata and Mumbai. The revised rates of consultancy and fee were lower than the existing rates.

The hospitals were also unhappy with the CGHS asking all registered hospitals to produce a bank guarantee of Rs 50 lakh each (multi-speciality units) and Rs 10 lakh each (single-speciality ones).