The private hospitals in Silicon Valley have decided to discontinue the practice of cashless claims of public sector insurance companies on Wednesday, April 24.

The decision comes after a meeting with the peak industry body for Private Hospitals and Nursing Homes Association (PHANA) in Bengaluru. They said that unless these insurance companies stop assessing the tariffs for treatment from June 1, the corporate hospitals in the city will not execute the cashless claims of the patients.

The association PHANA has more than 400 hospitals as its members in Bengaluru. PHANA members at the meeting deliberated on the problems faced by private hospitals because of the reluctance of insurance companies to hike treatment costs, reports TOI.

If the cashless claim facility gets cancelled at the private hospitals, patients will have to pay the amount directly at the hospital and will have to apply for the reimbursement from the insurance companies.

According to the reports, this decision by the corporates will affect the patients who will be getting their treatments from such private hospitals as more than 60 per cent visiting the hospitals prefer or avail cashless insurance schemes.