Private hospitals are resisting a new proposal by insurers and the General Insurance Council (GIC) to create a common empanelment system for cashless treatment. Concerns over pricing, claims settlement, and autonomy are driving the pushback.
A proposed reform aimed at streamlining cashless health insurance is facing hurdles. Major private hospitals across India have pushed back against insurers’ and the General Insurance Council’s (GIC) plan for a common empanelment framework. The initiative is intended to simplify hospital tie-ups, but stakeholders remain divided over its practicality.
The common empanelment system is designed to reduce paperwork and standardize contracts between insurers and hospitals, making cashless treatment easier for policyholders. Instead of negotiating separately with multiple insurers, hospitals would only need to go through a unified process.
However, private hospitals are voicing concerns. Many argue that claims settlement delays and pricing disputes remain unresolved and that a blanket framework may further limit their ability to negotiate fair rates. Hospitals worry about losing flexibility and fear that insurers may dictate terms under the guise of simplification.
Industry observers believe that while the proposal could improve transparency for patients, it risks deepening hospital–insurer mistrust if not implemented with clear accountability mechanisms. For patients, a successful framework could mean wider cashless coverage and faster approvals, but resistance from hospitals could stall the rollout.
India’s healthcare system heavily depends on cashless insurance tie-ups, yet delays and disputes often frustrate patients. A common empanelment framework could be a breakthrough in reducing friction, but unless hospitals’ pricing and settlement concerns are addressed, the reform risks hitting a dead end.
The coming months will determine whether hospitals and insurers can find common ground—or if India’s cashless health insurance reforms will remain stuck at the proposal stage.
