Hospitals and other health care providers contracted to provide services to customers of the insurance companies on a pre-agreed fees are called Network Hospitals or Provider Network. If the policyholder undergoes treatment in any of these network hospitals, there is no need for the Policyholder/ Insured to pay hospital bills, which is called ‘Cashless Facility’.
The Insurance Company, through its Third Party Administrators (TPAs) will directly pay the Hospital. Insured individuals typically pay less for using a network provider, and can avail the cashless services, instead of reimbursements from the insurer when availing services from a networked hospital/ health care provider.