AHPI Withdraws Suspension of Cashless Hospitalisation Notice Served on Bajaj Allianz

The Association of Healthcare Providers of India (AHPI) has withdrawn suspension of cashless hospitalisation services notice served on Bajaj Allianz General Insurance after a meeting with the health insurer.

During the meeting, attended by AHPI’s core committee members and senior representatives from Bajaj Allianz, the association highlighted a series of unresolved issues that are placing hospitals under severe financial and operational stress, ultimately compromising patients' care and safety, the association of hospitals said in a statement.

In view of the discussions on Friday Bajaj Allianz agreed to this and has restored cashless services with member hospitals, it said.

"We are pleased that the matter has been resolved in the interest of policyholders and citizens who must never face interruptions in their access to cashless healthcare. Cashless access is the backbone of health insurance and should never be compromised," Bajaj Allianz General Insurance MD & CEO Tapan Singhel said in a statement.

At the same time, episodes of this nature only reinforce the urgent need for a strong health regulator which we have been proposing for a while now to safeguard citizens’ interests and ensure transparency and fairness across the healthcare ecosystem, he said.

Commenting on the issue, APHI Director General Girdhar Gyani said, "We urge all the insurers to work in partnership with hospitals and restore cashless services, as the disruption is placing an unfair financial and emotional burden on patients. They also need to engage with the member hospitals regularly to revise outdated rates, setting up transparent grievance mechanisms, and respecting clinical autonomy." On August 22, AHPI announced its intent to suspend cashless hospitalisation services by its member hospitals for customers of Bajaj Allianz General Insurance and Care Health Insurance from September 1, 2025.

The association with 15,200 hospitals across India as its members had said its decision followed repeated complaints from hospitals that Bajaj Allianz refused to revise hospital reimbursement rates in line with rising medical costs and, in fact, pressured hospitals to further reduce tariffs that were agreed upon years ago under now-expired contracts.