Why Are AHPI and IMA Urging Star Health to Restore Cashless Services?

Synopsis
Key Takeaways
- AHPI and IMA demand immediate restoration of cashless services.
- Suspension of services impacts thousands of patients.
- AHPI represents over 15,000 healthcare institutions.
- Delays in empanelment restrict patient access.
- Cashless treatment is essential for financial security of patients.
New Delhi, Sep 15 (NationPress) Amidst ongoing challenges for numerous patients in hospitals, the Association of Healthcare Providers of India (AHPI) and the Indian Medical Association have urgently requested that Star Health and Allied Insurance promptly reinstate cashless services for their policyholders.
The AHPI expressed concern that many affiliated hospitals are encountering a critical scenario where Star Health Insurance has halted cashless services, forcing institutions to deal with distressed patients who are unexpectedly denied the essential facility of cashless treatment.
According to information from AHPI, cashless services have been suspended unreasonably at various hospitals, including Manipal Hospital - Delhi and Gurugram, Max Hospitals - North India, Metro Hospital - Faridabad, Medanta Hospital - Lucknow, Rajiv Gandhi Cancer Hospital - New Delhi, and several others.
Hospitals and nursing homes that are part of the IMA Hospital Board echoed these concerns.
Moreover, AHPI has claimed that Star Health is not only delaying but also completely ceasing the empanelment of certain hospitals, limiting patients' access to cashless services. This list includes Fortis Hospital, Manesar, Max Hospital, Dwarka, Medanta Hospital, Noida, and others.
Such delays in empanelment are constraining patient options and pushing many families towards the reimbursement process, which undermines the purpose of health insurance.
“The AHPI firmly demands that cashless services be restored immediately to all affected hospitals, to alleviate financial and emotional burdens on patients. Additionally, the empanelment of new hospitals must be expedited so that patients can receive care across India without interruption,” stated the association, which represents over 15,000 hospitals and healthcare institutions nationwide.
“Individuals purchase health insurance with the expectation of receiving cashless treatment at reputable hospitals. It is unfair for insurers to withhold this benefit after collecting premiums, thereby leaving families scrambling for funds during hospitalizations,” emphasized a joint statement by Dr. Girdhar Gyani, Director General of AHPI, and Dr. Abul Hasan, Chairman of the IMA Hospital Board.
“Patients deserve seamless access, and hospitals deserve equitable treatment as service providers. Star Health must take immediate action to restore trust and ensure that its insured members are not penalized for selecting hospitals that best meet their medical needs,” the statement further noted.
Previously, on September 12, the AHPI sent a formal notice to Star Health regarding “unfair practices” and warned of a suspension of cashless services by member hospitals by September 22.
In response, Star Health issued a statement criticizing AHPI for making “threats of suspending cashless services in an arbitrary manner, lacking clarity and actionable details.”
Meanwhile, the General Insurance Council expressed support for Star Health, urging AHPI to retract its threat to disrupt cashless services, assuring that policyholders’ access to healthcare remains fully protected.
In denying the allegations, AHPI stated that “the decision was neither arbitrary nor unilateral but a necessary reaction to the unilateral actions of Star Health Insurance in de-empaneling hospitals and withdrawing cashless services.”