Healthcare providers' body AHPI flags deficiencies to Star Health, warns to suspend cashless services

New Delhi, Sep 12 (PTI) Association of Healthcare Providers - India (AHPI) on Friday issued a formal communication to Star Health Insurance listing the persistent issues faced by member hospitals and warned suspension of cashless services by them.

The association, representing over 15,000 hospitals and healthcare institutions across the country, said this decision follows repeated complaints from member hospitals regarding Star Health Insurance's questionable practices.

These include coercive demands to further reduce rates at the expense of patient care, the raising of frivolous queries that undermine treating doctors' clinical judgement, unexplained deductions on approved claims, and abrupt withdrawal of cashless services from member hospitals, AHPI said in a statement.

Terming the decision of AHPI unfortunate, a Star Health Insurance spokesperson said threats of suspending cashless services in such a manner is arbitrary, lacking clarity or actionable details.

AHPI's abrupt press statement has only prejudiced the interests of policyholders across the country and created unnecessary confusion, the spokesperson said.

"We want to reassure our customers that their access to healthcare through Star Health will not be impacted.

"Tariff negotiations and billing practices are a regular activity between insurers and hospitals. However, AHPI's approach of targeting individual insurers disrupts patient care instead of enabling constructive solutions," the spokesperson added.

Collectively, these practices have caused serious disservice and hardship to patients and their families, it said.

AHPI has also pointed out the anti-competitive conduct, wherein Star Health, often in concert with other insurers, engages in collective bargaining practices designed to arbitrarily suppress hospital tariffs, it said.

Such practices distort the market, undermine fair negotiations, and run contrary to the principles of competition law, it said.

Explaining the rationale for this decision, AHPI director general Girdhar Gyani said, "The systemic failure of Star Health Insurance to address legitimate grievances, combined with their unfair practices, leaves us with no choice but to take appropriate action." PTI DP HVA