The dispute on cashless hospitalisation between the top corporate hospitals and the four state owned insurance companies may end soon. In a meeting held in Delhi on Friday, the chairman and managing directors (CMD) of the four insurance companies have asked top corporate hospitals to submit the package rates for various surgical procedures in the next 10 to 30 days. After which the two parties would negotiate to arrive at the final rates.

CMD of New India Assurance, M Ramadoss told Financial Chronicle, “We have invited the corporate hospitals to submit their rates for the 42 surgical procedures in a months's time. After which we will hold discussions to finalise the rates.”

The meeting was attended by CMDs of New India Assurance, Oriental Insurance, United India Insurance, National Insurance, third party administrators (TPAs) and members of the CII’s national committee on healthcare that consist of top corporate hospitals.

Dr Prathap C Reddy, Chairman of Apollo Hospitals said that the participating hospitals have expressed interest to give quality healthcare and cashless treatment to policyholders. From the hospitals, the meeting was attended by CMD, Medanta – The Medicity Hspitals Group Dr Naresh Trehan, MD of Fortis Healthcare Shivinder Mohan Singh, Vice Chairman of Max India Tony Singh, MD & CEO of Max Healthcare Institute Dr Pervez Ahmed, CEO of Fortis Healthcare Bhavdeep Singh besides others.

Meanwhile at a FICCI health insurance conference, chairman of Insurance Regulatory & Development Authority, J Harinarayan said, “As on July 1 this year there were 328 hospitals that were empanelled by the public sector insurers for providing cashless hospitalization in Delhi, Mumbai, Bangalore and Chennai which has increased to 391 as on July 29. I hope that the issues between hospitals and insurers would be resolved soon.”

However Harinarayan reiterated that the withdrawal and re-negotiation of the cashless facility by insurance companies was not a regulatory issue. “But if there is contractual violation between the policy holder and insurance company, the regulator would step in,” he said.

Financial Chronicle was the first to break the news on July 5 that effective July 1, the four public sector non-life insurance companies have capped the treatment costs for more than 40 common surgeries and have asked their TPAs to send policyholders that would avail cashless hospitalisation only to those hospitals that have agreed to the new rates. Top hospitals in the Mumbai, Delhi, Bangalore and Chennai such as Apollo, Fortis in Delhi, Leelavati and Breach Candy in Mumbai have refused to accept the new rates set by insurers. As result, policyholders would not be able to avail cashless hospitalisation in these hospitals. Incase they take treatment in a hospital that is not on the insurer’s panel for cashless service, they will have to pay for the treatment out of their pocket and later seek reimbursement from the insurance company.