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Uniform rate for cashless treatment soon

September 10, 2010 16:12 IST

StethoscopePublic sector insurance companies and large hospitals will finalise a uniform rate structure for cashless treatment scheme within a week, said chairman of a state-owned insurer.

"Within a week we will be able to arrive at the package rates of the big corporate hospitals. (They) have given us their own rates (and) based on that we will arrive on a uniform rate structure," chairman of New India Assurance Company M Ramadoss told reporters here today on the sidelines of a Confederation of Indian Industry Health Summit.

He further said that more hospitals would be added to the cashless treatment network once the insurers and hospitals finalise package rates for treatment under the cashless scheme.

While major hospitals have submitted their rates, Apollo Hospitals and Fortis Hospitals are yet to come up with their packages, he added.

"There should be standardisation of rates for all hospitals that will bring in more transparency in the system", Medicity chairman and managing director Naresh Trehan said.

He further added that the occupancy rate at hospitals have not gone down since the withdrawal of cashless treatment facility by PSU insurance companies on July 1, but 'it is the patients who are suffering.'

The cashless medical facility was suspended by four public sector unit insurers -- New India Assurance, United India Insurance, National Insurance and Oriental Insurance -- from July 1 after they alleged over-billing by certain private hospitals.

The insurance companies and hospitals are trying to resolve their differences over the issue of billing and have standard rates for treatment and hospitalisation.

Public sector insurance companies had to resort to rationalisation of rates for cashless facilities as they reportedly suffered a loss of Rs 2,000 crore (Rs 20 billion) because of overcharging by hospitals in Mumbai, Delhi, Chennai and Bengaluru.

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