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Informist, Monday, Nov. 17, 2025

By Narayana Krishna and Eshitva Prakash

HYDERABAD/MUMBAI – Max Healthcare Institute Ltd. Monday said it has settled the tariff dispute with insurance companies and the company is accepting patients with insurance coverage and cashless treatment option. The issue with at least four major insurance companies was settled and cashless treatment was back on track, the company's management said in a post-earnings analyst conference call. 

In September, Max Healthcare and some insurance companies engaged in a tariff tussle, leading to the suspension of cashless treatment at its network hospitals for policyholders. Insurance companies such as Tata AIG, Star Health, and Niva Bupa among others, were involved in the tussle, demanding further rate cuts in various treatments, even though there was a two-year tariff agreement between insurers and Max Healthcare in place.

After the dispute, the revenue from the insurance segment fell to 33.8% of the total revenue in the September quarter compared with 37.2% a year ago. Max Healthcare management said the share of patients paying on their own in cash increased to 35.5% of the total sales from 35.3% a year ago. The hospital network company said the international patient's share of total sales improved to 9.2% from 8.9% a year ago.

For the September quarter, Max Healthcare reported a consolidated net profit of INR 4.91 billion, up 74% on year, led by a deferred tax write-back of INR 555.60 million. The company's consolidated revenue was at INR 21.35 billion, up 25% on year.

"With regard to insurance renewals, there was an impasse with certain layers leading to temporary shortage, stopping of cashless facilities. The same has been resolved," Max Healthcare management said.

The management said the issues on the existing tariff were settled and there is a likely agreement to sort out the future issues with three major companies along with other small insurance companies.

Max Healthcare management said it is ramping up bed capacity and occupancy at its new hospitals at Dwarka and Noida in the National Capital Region. At Dwarka, 25% of planned capacity is operational and occupancy is of around 80%. Hospitals at Lucknow and Nagpur were also doing better, the company said, refusing to provide hospital-wise performance details.

The company said the growth in average revenue per occupied bed in existing hospitals is improving, though it is seen lower due to share of new hospitals increasing. Excluding the new hospitals and acquired hospitals, the average revenue per occupied bed growth was at 7% on year, Max Healthcare said.

Max Healthcare is expecting full impact of recent revision of the Central Government Health Scheme rates and addition of new categories to benefit the overall revenues. The impact of the new additions like super specialty category may reflect in FY27, the management said.

At 1321 IST, Max Healthcare shares traded at INR 1,119.90 on the National Stock Exchange, up 1.5% from their previous close.  End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Akul Nishant Akhoury

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