Cashless Tie-Ups Cut: Ahmedabad Hospitals Suspend Services for 3 Insurance Firms

Ahmedabad: The recent move to suspend cashless treatment facilities for three major insurance companies by the Ahmedabad Hospitals and Nursing Homes Association (AHNA) has garnered widespread support from medical associations across the country. This action, which came into effect on April 2, 2025, is the latest escalation in a series of unresolved disputes between the AHNA and these insurers over payment practices and administrative procedures.

According to the news reports, the Indian Medical Association (IMA) Gujarat, Ahmedabad Medical Association (AMA), and several specialist associations—including those representing ENT surgeons, orthopaedists, and gynaecologists—have voiced their solidarity. Several medical associations from other states — including Rajasthan, Uttar Pradesh, Madhya Pradesh, and Punjab — have also expressed support.

Also Read: Ahmedabad Hospitals to halt Cashless Facilities for 3 Firms from April

Dr. Bharat Gadhvi, president of AHNA, stated that multiple hospitals were removed from the insurers’ network arbitrarily, without due process or notification. He also highlighted that hospital charges had not been revised for many years, and that insurance companies were often refusing to honour authorisation letters for cashless treatment. He said, "It often leads to skirmishes between hospitals and patients."

Also Read: 81 Ahmedabad Hospitals delisted, AHNA issues legal notice to Tata AIG

According to the TOI, AHNA members pointed out that the issues delay the discharge of the patients, flouting guidelines issued by IRDA. "At the time of settlement, unnecessary and irrelevant raising of queries by non-medical personnel appointed by insurance companies, rejecting claims of the patients by raising irrelevant issues are also raised by patients time and again," said Dr Viren Shah, vice-president of AHNA.

The firms were asked by AHNA members to make decisions on the exclusion of hospitals, revision of charges, and redressal of issues related to claims to ensure seamless service to patients. In response, some of the insurance companies involved have refuted the claims made by AHNA, calling them "unsubstantiated, misleading, and factually incorrect." One insurer stated that the association had failed to engage in constructive dialogue before taking such drastic action.