AHPI and Star Health to Reinstate Cashless Services at Member Hospitals from October 10

The Association of Healthcare Providers of India (AHPI) and Star Health Insurance have reached an agreement to resume cashless insurance services at AHPI member hospitals starting October 10, 2025, as per the news reports. The development followed extensive discussions, leading to a resolution of key concerns between healthcare providers and the insurer.

Cashless Hospitalisation Returns Following Recent Suspension

Star Health had previously suspended cashless services from September 22, 2025, at several AHPI hospitals across India. Major hospitals affected included Manipal Hospitals (Delhi and Gurugram), Medanta (Lucknow), Care Hospitals (Vizag), and Max Hospitals (North India). The disruption led to significant challenges for patients who were forced to arrange upfront payments for emergency care during the suspension period.

Key Terms of the Fresh Agreement

In a joint statement, both AHPI and Star Health confirmed that the rescinded suspension will make way for full service restoration across all member hospitals from October 10, 2025. Additionally, both parties agreed to resolve pending issues such as tariff revisions by October 31, 2025, through mutual dialogue. This decision reaffirms both organisations' commitment to ensuring smooth healthcare delivery and financial ease for patients.

Efforts for Long-Term Sector Harmony Underway

Seeking to avoid future disruptions, AHPI announced its intent to form an industry panel comprising hospital chains and insurers. This group will work towards standardising patient service agreements and designing sustainable pricing models. It aims to build a robust network that places patient welfare at the centre of healthcare financing and access.

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Background of the Dispute and its Impact

The AHPI had labelled the original suspension by Star Health as arbitrary, which caused significant distress to patients in critical and emergency situations. With large tertiary care hospitals impacted across cities, several patients experienced delayed treatments. The resolution aims to restore patient confidence and system stability.

Conclusion

The decision to resume cashless services from October 10, 2025, followed by efforts to finalise tariff discussions by month-end, reflects a collaborative move towards patient-centric healthcare. Both AHPI and Star Health are working to ensure continuity and advancement in the health insurance sector.

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