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India Revamps CGHS Rates With Multi-Tier Pricing, Hospital Stocks Rally Up to 5%

Payments will be tied to accreditation, hospital size, city tier, ward entitlement, replacing decade-old tariffs.

Overview

  • The Union Health Ministry announced a multi-layered overhaul covering nearly 2,000 CGHS procedures, effective October 13.
  • Rates benchmark to NABH-accredited hospitals with non-accredited facilities paid 15% less, general-ward treatments cut by 5%, and smaller-city tariffs set 10–20% below Tier-I metros.
  • According to News18, CGHS-empanelled super-speciality hospitals with more than 200 beds will receive 15% above the base rate under the revised structure.
  • Hospital shares rose in early trade, with Apollo, Max, Fortis, Narayana, Global Health and Yatharth up as much as about 5%, including Apollo up 3.7% and Fortis up roughly 5% intraday.
  • News18 reports that empanelled providers must accept the new terms before October 13 or undergo fresh empanelment with CGHS.