AHPI and Star Health Resolve Dispute, Restore Cashless Hospital Services from October 10, 2025

The Association of Healthcare Providers of India (AHPI) and Star Health and Allied Insurance Co Ltd (Star Health) have resolved their recent dispute just in time, agreeing to restore cashless services at AHPI member hospitals effective October 10, 2025. This development marks a significant relief for patients and policyholders who had faced uncertainty following AHPI's earlier advisory to halt cashless claims from Star Health, effective September 22, 2025.

AHPI and Star Health Resolve Dispute, Cashless Services in Hospital to Resume

The conflict arose due to disagreements over tariff revisions and other outstanding issues between the healthcare providers and the insurer. AHPI had instructed its member hospitals to suspend cashless services for Star Health policyholders as a pressure tactic to resolve these issues.

However, with the announcement of their renewed cooperation, that directive has now been revoked, reinstating seamless healthcare access for affected patients.

In a joint statement, AHPI and Star Health emphasised their shared commitment to prioritising the welfare of patients and policyholders. "This decision has been taken in the best interest of patients and policyholders, ensuring they continue to receive timely, hassle-free access to healthcare services without financial distress," the statement read. This assurance highlights the critical importance of uninterrupted medical care and financial support for patients relying on cashless insurance benefits.

To further prevent such disruptions in the future, AHPI revealed plans to establish a collaborative panel of industry leaders. "To prevent similar incidents in future ... AHPI will help form a group of industry leaders who will collaborate with key insurers to reach an industry level agreement," the Association said.

This proactive measure aims to foster ongoing dialogue between healthcare providers and insurers, encouraging consensus on tariffs and claim settlements, thereby reducing the risk of service breakdowns.

Both parties have also agreed to continue negotiations on outstanding matters, including tariff revisions, with a deadline set for resolution by October 31, 2025. The cooperation between AHPI and Star Health serves as a positive example of how dialogue and compromise can restore and strengthen healthcare access, ensuring that policyholders are not caught in the crossfire of industry disagreements.