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Shares of the BSE 500 firm opened under pressure after receiving a warning from the Association of Healthcare Providers – India (AHPI), which threatened
to suspend cashless services by member hospitals. On Monday, September 15, Star Health and Allied Insurance stock fell as much as 1.01 per cent, hitting an intra-day low of Rs 439.25, according to BSE data. AHPI, which represents over 15,000 hospitals and healthcare institutions across the country, raised serious concerns against Star Health on Friday, September 12. The association cited issues such as:
- Coercive demands to reduce rates at the expense of patient care
- Frivolous queries undermining doctors’ clinical judgment
- Unexplained deductions on approved claims
- Abrupt withdrawal of cashless services
It termed these “persistent issues” and alleged anti-competitive practices, including collective bargaining with other insurers to suppress hospital tariffs.
In response, the large-cap insurer dismissed the warning as “arbitrary” and said AHPI’s approach had created unnecessary confusion for policyholders. The company clarified that customer access to healthcare will not be impacted, adding that tariff negotiations and billing practices are routine between insurers and hospitals.
“Targeting individual insurers disrupts patient care instead of enabling constructive solutions,” the insurer said.
AHPI director general Girdhar Gyani added that Star Health’s failure to address grievances has left the association with “no choice but to take appropriate action.”
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