Ahmedabad Hospitals to halt Cashless Facilities for 3 Firms from April

Written by Medical Dialogues Team Published On 2025-03-14T11:15:30+05:30 | Updated On 14 March 2025 11:16 AM IST

Ahmedabad: The Ahmedabad Hospitals and Nursing Homes Association (AHNA) recently announced it will suspend cashless facilities for patients of three prominent insurance companies—Star Health & Allied Insurance Co Ltd, Care Health Insurance, and Tata AIG Health Insurance-starting April 2. This move comes after ongoing issues with these insurers, marking a significant decision by AHNA.

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

Medical Dialogues had previously reported that the Ahmedabad Hospitals and Nursing Homes Association (AHNA) has issued a legal notice to Tata AIG Gen Insurance Co for arbitrarily “delisting/excluding” 81 hospitals in the city without following the proper procedure.

In a statement released on Tuesday, AHNA officials held multiple rounds of discussions with these companies and cited a range of issues that have led to the suspension, including unjustified claim deductions, unwarranted claim rejections, and unexplained delisting of hospitals and nursing homes from the insurers' networks without due process.

Also Read: Kolkata doctors refuse cashless treatment due to low rates

As per the recent media reports by TNIE, AHNA claimed, “Despite repeated assurances and negotiations, these companies have persisted with their unfair practices, adversely impacting both patients and healthcare providers. Such one-sided actions by the insurers are unacceptable and contrary to the principles of fairness and natural justice.”

AHNA further emphasized that it is exploring alternative cashless payment arrangements with other financial institutions for affected patients, though it specified that this would not apply to Star Health patients.

According to TNIE, detailing this, it said, “We have made every effort to resolve these issues amicably through multiple discussions. However, despite commitments to reform their policies, these insurers have continued their malpractices. This has left us with no choice but to take this firm stand to protect both our patients and our member hospitals.”

Also Read: 4 Rajkot hospitals served notices for PMJAY scheme violation

In response to AHNA's allegations, Star Health Insurance issued a statement defending its practices. The company stressed its commitment to providing affordable and customer-centric healthcare, citing its longstanding relationships with over 14,000 hospitals across the country. The insurer also pointed out that while the health insurance sector adheres to strict IRDAI regulations, the lack of regulatory oversight in the hospital industry can present certain challenges. Star Health stressed that customer interests are paramount and reaffirmed its focus on ensuring uninterrupted access to essential healthcare services.

Similarly, Tata AIG Health Insurance issued a statement expressing its commitment to ethical healthcare partnerships. The company is actively engaged with all relevant stakeholders to resolve the matter as quickly as possible. This decision aligns with industry-wide efforts to safeguard policyholders' interests and uphold transparency in practices. Customer interests are placed at the core of all decisions, ensuring uninterrupted access to necessary healthcare services. TATA AIG continues to collaborate with an extensive network of over 11,400 hospitals across India, reaffirming its commitment to all customers.

AHNA stated that it has submitted a letter to the Insurance Regulatory and Development Authority of India (IRDAI), urging the authority to take strict action against the insurers.

Ahmedabad Hospitals and Nursing Homes Associationcashless treatmenthealth insuranceIrdaiAHNA

Medical Dialogues Team