Hospitals' body AHPI, Star Health to restore cashless services at member hospitals from October 10

The announcement comes after prolonged talks between the two sides, with AHPI agreeing to revoke its earlier advisory that had called for suspension of cashless services from September 22.

The Association of Healthcare Providers of India (AHPI) and the Star Health and Allied Insurance Company on Sunday said they have mutually decided to restore cashless services at AHPI member hospitals effective October 10.

It was also agreed that the parties will make all efforts to ensure that the other outstanding issues, including tariff revisions, are resolved by October 31, a joint statement said.

The announcement comes after prolonged talks between the two sides, with AHPI agreeing to revoke its earlier advisory that had called for suspension of cashless services from September 22. Both organisations also confirmed that efforts are underway to resolve other pending issues, including tariff revisions, by October 31, 2025.

To ensure continuity of patient services and avoid similar stand-offs in future, AHPI said it will help create a group of industry leaders who will work with insurers to develop an industry-level agreement, keeping customer interests at the forefront.

Dr. Girdhar Gyani, Director General of AHPI, hailed the resolution, saying, “We are pleased that our dialogue with Star Health Insurance has resulted in this positive outcome. The restoration of cashless services will ease the burden on patients and their families, who deserve uninterrupted access to care. AHPI remains committed to working with all stakeholders to create a more patient-centric healthcare ecosystem.”

Star Health Insurance MD & CEO Anand Roy said, “At Star Health Insurance, our foremost priority is the well-being of our policyholders. We are glad to have resolved the issues through constructive engagement with AHPI. Restoring cashless services at member hospitals reflects our commitment to ensuring accessible, affordable, and seamless healthcare for our customers.”

Background: Suspension Left Patients in Distress
Earlier, several AHPI member hospitals, including large tertiary care chains, faced an alarming situation after Star Health suspended cashless services, leaving hospitals to manage distressed patients.

According to AHPI, the suspension was carried out in an “arbitrary manner” across multiple hospitals such as Care Hospitals (Ramnagar, Vizag), Manipal Hospitals (Delhi and Gurugram), Max Hospitals (North India), Metro Hospital (Faridabad), Medanta Hospital (Lucknow), Rajiv Gandhi Cancer Hospital (New Delhi), Sarvodaya Hospital (Faridabad), and Yatharth Hospitals.