Network Hospitals in Health Insurance

Hospital treatments can be expensive, and insurers take this into account while designing their policies. They also recognise that certain private hospitals may charge higher rates to patients covered by health insurance plans.

To manage these expenses, insurance companies enter into partnerships with certain hospitals and predetermine the cost of treatment. Such hospitals are referred to as network hospitals. Keep reading to know more.

How Does Network Hospitals Work?

You can use a cashless facility when you receive treatment at a network hospital. This is because you do not need to pay the hospital bill at once. The bill is paid directly by the insurance company to the hospital.

However, when you visit a non-network hospital, you will have to pay all the expenses out of your own pocket. You can later claim back the money from your insurance company. This procedure is referred to as reimbursement.

What are the Benefits of Network Hospitals?

Choosing a network hospital has many benefits. They are as follows:

• You do not have to organise a big sum of money in case of an emergency.


• Processing claims is fast and easy.


• Less paperwork is required.


• Direct settlement of bills between the hospital and insurer.

On the other hand, non-network hospitals may offer flexibility to choose any doctor or hospital, but the process is more time-consuming and more expensive upfront.

That’s why it is always a good idea to check the list of network hospitals before buying a health insurance plan. Keeping this list handy can help you make better decisions in urgent situations.

What is the Difference Between Network and Non-Network Hospitals?

Below is a table depicting the difference between network and non-network hospitals:

Before choosing a health insurance plan, always check how many network hospitals are available near you. This small step can make a big difference when you actually need medical care.