Cashless denied for Star Health and Tata AIG: Ahmedabad hospitals

Several hospitals and nursing homes in Ahmedabad have decided to suspend cashless treatment services for Star Health and Tata AIG General Insurance from April 1, citing claim denials, unjustified deductions, and non-renewal of tariffs. The move by an association of hospitals in Gujarat's capital follows a standoff since September 2023, as reported by ET, with the local healthcare industry pushing back against what they say are unfair practices by insurers, while insurers demand standardisation in healthcare costs.

In a letter addressed to Tata AIG and Star Health, the Ahmedabad Hospitals and Nursing Homes Association raised concerns that have remained unresolved despite several rounds of discussions. The association accused insurers of arbitrarily rejecting claims and making frequent deductions from approved claims without clear justifications, creating financial strain on hospitals. The association said that some hospitals have been removed from the insurer's network without prior discussions.