AHPI Calls for Immediate Restoration of Cashless Services
The Association of Healthcare Providers India (AHPI) has requested Bajaj Allianz General Insurance to restore cashless services at member hospitals that were recently removed from its cashless network. AHPI has clarified that it will review its advisory to halt cashless services from 1st September 2025, once the insurer resumes these services at various hospitals over the coming days.
Dr. Sunil K. Khetarpal, Deputy Director General of AHPI, stated:
“Following discussions today, Bajaj Allianz General has reinstated cashless services at Medanta Lucknow and Manipal Hospital, Delhi. This is a positive step towards resolving the ongoing issue.”
Background of the Dispute with Bajaj Allianz
Earlier, Bajaj Allianz had suspended cashless services for several member hospitals, citing outdated agreements and reimbursement structures. AHPI had, in response, advised its member hospitals in North India to temporarily withdraw cashless treatment facilities for Bajaj Allianz policyholders starting September 1, 2025.
Girdhar Gyani, Director General of AHPI, emphasized:
“Our focus is on constructive dialogue with insurers to safeguard patient interests. We urge insurers to partner with hospitals, restore cashless services, revise outdated tariffs, and respect clinical autonomy.”
AHPI’s Advisory and Member Hospital Response
AHPI’s advisory stems from repeated complaints by hospitals regarding unilateral deductions, delayed payments, and prolonged pre-authorization processes. Hospitals have reported financial and operational strain due to these practices.
A similar notice was issued to Care Health Insurance on 22nd August 2025, requesting a response by 31st August 2025. AHPI warned that member hospitals might also suspend cashless services for Care Health Insurance beneficiaries if no resolution is reached.
Challenges Faced by Hospitals Due to Insurance Policies
According to AHPI, the primary issues include:
- Refusal to revise reimbursement rates in line with rising medical costs
- Pressure to cut tariffs from now-expired contracts
- Excessive delays in payments and approvals
These challenges directly impact the sustainability of hospitals and the quality of patient care, making timely resolution critical.
Broader Implications for Patients and Healthcare Providers
The General Insurance Council (GIC) had earlier described AHPI’s decision to suspend cashless facilities as “arbitrary and lacking clarity”. However, AHPI maintains that the issue is not merely commercial but revolves around patients’ rights, accessible healthcare, and fair hospital practices.
“Patients are the biggest sufferers when insurers deny claims, refuse tariff revisions, or interfere in medical decisions,” said Gyani.
By urging insurers like Bajaj Allianz and Care Health Insurance to restore services and engage regularly with hospitals, AHPI aims to ensure transparency, fairness, and better patient outcomes.
