Apollo Hospitals Engages Insurers to Resolve Pricing and Claim Disputes

Apollo Hospitals Enterprise Ltd (AHEL), India’s largest hospital chain by bed capacity and revenue, said it is in active discussions with health insurance companies to address pending pricing and claim settlement issues. The move comes after the Association of Healthcare Providers–India (AHPI) had warned of potentially suspending cashless services for several insurers, including Max Insurance, Niva Bupa, Bajaj General Insurance, and Star Health Insurance. Apollo’s management expressed confidence in finding a constructive path forward, emphasizing the need for collaboration across the healthcare-insurance value chain.

Addressing pricing contracts, Group CFO A Krishnan explained that Apollo’s contracts with insurers are renewed every two years, while inflation fluctuates annually, creating a rolling system of contract updates. The hospitals had earlier raised concerns over delayed claim settlements, which led some insurers to temporarily remove certain hospitals from their networks. These disputes were largely resolved following AHPI-insurer discussions in September. Meanwhile, Apollo reported a 26% year-on-year rise in consolidated net profit to Rs 477 crore in Q2 FY26, with revenues increasing 13% to Rs 6,304 crore.

Looking ahead, Apollo aims to grow 13% organically, driven by returning Bangladeshi patients and expansion into international markets such as Uzbekistan, Iraq, Africa, and Indonesia. The hospital chain plans to add six new facilities in the next year, including a cancer hospital in Delhi and a Pune facility contributing to revenue from Q3 FY26, while expansion projects in Malleshwaram and Mysuru are expected by FY27. An additional 5% growth is anticipated with the launch of new beds and hospitals in key cities.

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