Ahmedabad hospitals to suspend cashless facility for 3 health insurers

AHNA exploring tie-ups with financial institutions to offer cashless payment alternatives for affected patients

Citing low charges and unjustified deductions, Ahmedabad-based hospitals and nursing homes have announced the indefinite suspension of cashless services for policyholders of Tata AIG General Insurance, Care Health Insurance, and Star Health and Allied Insurance with effect from April 2, 2025.

 

The suspension follows growing concerns over low reimbursement rates, unjustified deductions, non-renewal of tariff rates, and the unilateral exclusion of hospitals by insurers.

 

In its letter addressed to the insurance companies, the Ahmedabad Hospitals and Nursing Homes Association (AHNA) stated that several issues affecting the seamless delivery of services to insured patients have remained unresolved despite multiple communications and discussions.

 

 

“A meeting of all hospitals and nursing homes was convened by us, wherein it was decided to take necessary actions against erring health insurance companies,” the letter added.

 

The association further noted that, according to the 2023-24 annual report of the Council of Insurance Ombudsman, Ahmedabad had the third-highest number of health insurance-related complaints, following Mumbai and Pune.

 

The AHNA could not be reached for comment.

 

Responding to the allegations, Tata AIG stated that the company is reviewing the communication received from AHNA and has already initiated necessary steps to ensure its customers face no inconvenience.

 

“With a robust network of over 11,000 hospitals across India, we remain dedicated to providing our customers with seamless access to quality healthcare services,” the statement added.

 

The AHNA is also exploring tie-ups with financial institutions to offer cashless payment alternatives for affected patients.

 

A statement by the association, however, added that such arrangements may not apply to Star Health clients, given the severity of concerns raised against the company.