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Network Hospital | Meaning & Cashless Benefits

A network provider is a medical facility or hospital which the insurance company enlists to provide healthcare services to an insured person by a cashless facility. A network provider can be a hospital, a clinic or any other medical facility. 

Health insurance companies usually sign an agreement with healthcare providers to provide medical services to their clients or policyholders at negotiated rates and enlist them as network providers. This agreement enables the cashless facility for the policyholders. If a policyholder undergoes medical treatment in a network hospital, the insurer directly pays for the treatment to the hospital. 

The arrangement of network providers is efficient and cost-effective for all parties. The policyholder makes use of the cashless facility and takes medical treatment by paying upfront. The insurer negotiates rates for all treatments with the network providers, reducing the cost of claims. The hospital or network provider gets access to a large customer base of the insurer, which results in an increase in business. 

Network hospitals are critical to avail of the cashless facility in your health insurance policy. Please check the list of network providers in your area or city of residence before you buy a health insurance plan for you and your family.

 

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