Shares of Star Health dropped over 2% after hospitals in Ahmedabad announced the suspension of cashless services for Star Health and Tata AIG General Insurance policyholders, effective April 1, 2025.
The Ahmedabad Hospital and Nursing Homes Association (AHNA) cited key reasons for this move, including unjustified deductions, low reimbursement rates, non-renewal of tariff rates, and arbitrary hospital blacklisting by insurers. Hospitals claim that delayed and reduced payments have placed them under severe financial strain, making it unfeasible to continue offering cashless treatments.
As a result, policyholders will have to pay medical bills upfront and seek reimbursement later, a shift that could create financial challenges for many patients relying on hassle-free, cashless treatment options.
Star Health shares opened at ₹360.70 and hit a high of ₹361.20 before dipping to ₹353.15, marking a new 52-week low. The stock has fallen significantly from its 52-week high of ₹647.00.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information.
