Delhi nursing home forum moves IRDAI against 'cartel-like practices' by health insurers

New Delhi, Aug 28 (PTI) A forum of nursing homes and private hospitals in Delhi has filed a complaint with the Insurance Regulatory and Development Authority of India (IRDAI), accusing health insurers of indulging in cartel-like practices that threaten the sustainability of quality healthcare.

In its submission, the Delhi Medical Association Nursing Home Forum (DMA NHF) urged IRDAI to investigate allegations of collusion, examine the alleged abuse of dominance by private insurers, and issue corrective measures to ensure fair, inflation-linked hospital tariffs.

It also sought safeguards for patients to ensure continuity of cashless services and called for a probe by the Serious Fraud Investigation Office (SFIO) into the insurers’ conduct, a statement said.

The forum claimed that the insurers collectively introduced a “common empanelment” framework that dictates hospital tariffs and commercial terms, depriving hospitals of their right to negotiate independently.

It argued that such collective bargaining has no legal standing and violates competition norms.

“With private insurers controlling a major share of India’s health insurance market, they are misusing their dominant position to impose unilateral tariffs.

"This framework strips hospitals of their independence, artificially suppresses tariffs, and threatens the sustainability of quality healthcare services.

"Instead of protecting patient interests, insurers are hiding behind regulatory directives to justify collective bargaining,” V K Monga, Chairman, DMA NHF, said.

The forum claimed that hospitals are being compelled to provide cashless services under expired contracts at outdated and unviable tariffs, a practice it warned could compromise patient care.

It said that India already has among the lowest hospital tariffs globally and any further suppression could discourage investment in healthcare infrastructure. PTI NSM ARI