AHPI asks insurers to resume cashless services, ready to review its advisory

Hospitals vs Insurers

The Association of Healthcare Providers of India (AHPI), struck a more conciliatory note on Thursday, saying that it is ready to review the advisory given to its members to suspend cashless services for Bajaj Allianz and Care Health policyholders, once insurers resume cashless services at various hospitals in the next couple of days.

AHPI’s core committee members on Thursday met with senior representatives from Bajaj Allianz. The association, which represent around 20,000 hospitals across the country, including major healthcare chains raised series of unresolved issues that are placing hospitals under severe financial and operational stress.

"In view of the discussions today, AHPI urged the insurers that they must immediately restore cashless services at its member hospitals, as the disruption is placing an unfair financial and emotional burden on patients," the association said in a statement.

AHPI indicated it may "review" its advisory if insurers restore cashless services within the next couple of days.

“Our goal is to engage in constructive dialogue with insurers to resolve these issues in the larger interest of patients,” said Dr. Girdhar Gyani, Director General of AHPI.

Gyani urged insurers to engage with the member hospitals regularly to revise outdated rates, setting up transparent grievance mechanisms, and respect clinical autonomy.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 go against the principles," Gyani said.

AHPI also expressed concern over the proposed GIC-led common empanelment process and abrupt stoppage of cashless services to pressurise AHPI member hospitals in lowering tariffs which it viewed as anti-competitive and lacking a sound legal basis.

The dispute between insurers and hospitals, follows AHPI’s advisory issued on August 22 to suspend cashless services for Bajaj Allianz and Care Health Insurance from September 1. The General Insurance Council responded sharply, calling the move “arbitrary” and warning that it could jeopardize patient safety and erode trust in the health insurance ecosystem.

“Disruption in cashless service not just impacts families through higher upfront costs but also threatens survival in critical emergencies,” the Council said in its August 26 statement.

The Council urged AHPI to withdraw its advisory and resume cashless services, citing industry-wide efforts like “Cashless Everywhere” and the National Health Claims Exchange (NHCX) aimed at improving access and transparency.