AHPI to take call on ending freeze on Bajaj Allianz cashless services

The Association of Healthcare Providers (India) (AHPI), which last week issued an advisory asking member hospitals in North India to stop offering cashless treatment to Bajaj Allianz General Insurance policyholders from September 1, said on Tuesday it will decide in the next couple of days whether to withdraw the advisory, after a meeting with executives from the insurance company in Delhi on Thursday.

 

“In view of Thursday’s discussions, AHPI urged the insurer to immediately restore cashless services at its member hospitals, as the disruption is placing an unfair financial and emotional burden on patients. AHPI has indicated that it will review the advisory given to its members once the insurer resumes cashless services at various hospitals in the next couple of days,” it said in an after-meeting statement.

 

Sources said AHPI has, in principle, agreed to revoke the advisory against the Pune-based non-life insurer, after the insurer accepted AHPI’s key demands, including initiating price negotiations with member hospitals and re-enlisting several hospitals that had previously been delisted. Sources added that AHPI is also seeking standardisation of rules from the General Insurance Council (GIC) on the delisting of hospitals by insurers.

 

In the meeting, AHPI highlighted several unresolved issues that have placed hospitals under financial and operational stress — most notably that Bajaj Allianz General Insurance has not revised its tariffs for several years, despite persistent medical inflation and rising operating costs.

 

“Our goal is to engage in constructive dialogue with insurers to resolve these issues in the larger interest of patients. We urge all insurers to work in partnership with hospitals and immediately restore cashless services at member hospitals,” said Girdhar Gyani, director general of AHPI, adding that insurers must regularly engage with hospitals to revise outdated rates, establish transparent grievance mechanisms, and respect clinical autonomy. 

 

“The issues we have raised are not about commercial disputes alone, but about the sustainability of hospitals and the rights of patients. Patients are the biggest sufferers when insurers refuse to revise tariffs, deny claims, and interfere in medical decisions. These practices are coercive, unfair, and undermine the principles of accessible healthcare,” he added.

 

AHPI also expressed concern during the meeting over the proposed GIC-led common empanelment process and the abrupt stoppage of cashless services, which it said was being used to pressure AHPI member hospitals into lowering tariffs.

 

Sources said the meeting was attended by representatives of several large hospital chains, including Medanta, Fortis, and Max Hospitals.

 

Earlier this week, GIC — the industry body for non-life insurers — had asked AHPI to withdraw its advisory. “This action was arbitrary, lacking clarity or actionable details. This sudden unilateral move by AHPI has created unnecessary confusion and concern among citizens, impacting trust in the health insurance ecosystem,” the council said in a statement on Tuesday.

 

AHPI, however, did acknowledge the Council’s locus standi in the matter between hospitals and Bajaj Allianz General Insurance.

 

Reports also suggested that AHPI is likely to write to the Competition Commission of India and the Insurance Regulatory and Development Authority of India on the issue. Separately, the DMA (Delhi Medical Association) Nursing Homes & Medical Establishments Forum has filed a complaint with the insurance regulator against alleged anti-competitive practices by insurers acting collectively under GIC. The forum has urged the regulator to investigate the council’s role in alleged cartelisation and ensure fair, inflation-linked tariffs for hospitals.