Representatives from different insurance companies, healthcare providers and third-party administrators (TPAs) met on Monday, under the umbrella of Confederation of Indian Industries. TPAs act as a bridge between hospitals and insurance companies.

The talks were held following a 13-day long impasse in the Insurance Sector, after the public sector insurance companies significantly reduced the number of hospitals, where cashless facility was present. In Mumbai, the number of hospitals came down from over 800 to 90 and in Delhi, 150 hospitals wiped out the facility.

The outcome of the meeting was that while the PSUs will continue with their Preferred Provider Network, they will be a part of a committee that would come out with new insurance products in the next three months.

There will also be a gradation of the hospitals. Vishal Bali, CEO of the Fortis group of hospitals, who attended the CII meeting said, ''the hospitals would be graded in three categories - A, B and C - on the basis of infrastructure facilities and specialties''.

The insurance firms have also acknowledged customary modus operandi that is mandatory to be followed in 41 types of surgeries.

GIPSA, General Insurance Public Sector Association, a parent body of four public sector health insurance companies, has decided to take remedial actions to cut down escalating losses due to bogus claims, as a result of the nexus between hospitals, patients and third party agents.

The new policy became operational from July 1. PPN of hospitals in Mumbai, Delhi, Bangalore and Chennai was prepared. The hospitals, which approve the rates finalized by the insurance companies, are incorporated in the PPN.