4 min read

Understanding Network Hospitals in Health Insurance: Types, Limitations and Benefits

Unlock the advantages of choosing network hospitals and how they can positively impact your healthcare journey.

Understanding network hospitals

As we grow older, unforeseen health issues can strike at any moment, and having reliable health insurance coverage is a smart and proactive choice to make sooner rather than later.

Health insurance provides individuals and families with financial protection against the exorbitant costs of medical treatments, hospital stays, and healthcare services. However, there's more to health insurance than just signing up for a policy.

Imagine a scenario where you or a loved one suddenly falls ill or requires urgent medical attention. In such critical times, the last thing you want to worry about is navigating through the complexities of medical bills, reimbursements, and finding the right healthcare provider. This is precisely where network hospitals step in to offer a lifeline.

Network hospitals are an essential component of health insurance plans, strategically chosen by insurance providers to ensure policyholders receive seamless and hassle-free healthcare services.

These hospitals play a vital role in bridging the gap between insurance companies and individuals seeking medical assistance.

Read more: Network And Non-Network Hospitals: What’s The Difference?

Benefits of network hospitals in health insurance

1. Cashless treatment

  • A streamlined process for cashless treatment: Network hospitals have established procedures in place to facilitate cashless treatment, allowing policyholders to receive medical care without the need to pay upfront and later seek reimbursement.
  • Reduces financial burden for policyholders: Providing cashless treatment options, which not only eliminates the need for filing reimbursement claims but also reduces the immediate financial burden during emergencies, allowing policyholders to focus on receiving timely and necessary medical care.

2. Quality healthcare services

  • Stringent quality checks by insurance companies: Insurance companies conduct rigorous evaluations and quality checks on network hospitals to ensure that they meet specific standards of care, providing policyholders with access to reliable and trustworthy healthcare services.
  • Availability of experienced doctors and specialists: Network hospitals often have a wide network of experienced doctors and specialists who are associated with the insurance company, ensuring that policyholders have access to a diverse range of medical expertise for their healthcare needs.
  • Modern medical facilities and equipment: Network hospitals are equipped with modern medical facilities and state-of-the-art equipment, enabling them to deliver advanced diagnostic and treatment services, promoting better healthcare outcomes for policyholders.

3. Cost-effectiveness

  • Negotiated rates and discounts for policyholders: Network hospitals have pre-negotiated rates with insurance companies, resulting in cost savings for policyholders as they can avail of medical services at discounted rates, ensuring affordable healthcare.
  • Reduced out-of-pocket expenses: Policyholders can significantly reduce their out-of-pocket expenses as the insurance coverage often covers a larger portion of the medical costs, resulting in financial relief and increased affordability of healthcare services.

4. Seamless claim settlement

  • Simplified claim procedures: Network hospitals not only offer streamlined claim procedures, making it easier for policyholders to submit claims and navigate the reimbursement process with reduced administrative complexities but also enable faster claim processing by insurance companies, ensuring timely reimbursement and saving valuable time for policyholders.
  • Minimisation of paperwork: Network hospitals work in collaboration with insurance companies, resulting in reduced paperwork and administrative hassles for policyholders when it comes to filing claims, making the overall experience more convenient and hassle-free.

5. Wide network coverage

  • Accessibility to healthcare facilities in various locations: Network hospitals are strategically located across different regions, providing policyholders with convenient access to healthcare facilities in their vicinity, making it easier to seek medical treatment without having to travel long distances.
  • Emergency services available: Network hospitals are equipped to handle emergency situations, ensuring that policyholders have access to timely and critical care when they need it the most, providing peace of mind during emergencies.

Types of network hospitals

  • Public hospitals: These are government-run healthcare institutions that provide medical services to the general public. They are often funded by the government and offer a wide range of healthcare services.
  • Private hospitals: These are privately owned and operated healthcare facilities. They may vary in size and specialisation, offering a comprehensive range of medical treatments and services. Private hospitals are known for their state-of-the-art infrastructure and advanced medical technologies.
  • Speciality centres: These are hospitals or healthcare facilities that focus on specific medical fields or specialities. Examples include cardiac centres, orthopaedic hospitals, cancer treatment centres, and fertility clinics. Speciality centres have highly skilled doctors and specialised equipment to provide targeted and advanced care.
  • Clinics: Clinics are smaller healthcare establishments that offer outpatient services, such as consultations, minor procedures, vaccinations, and diagnostic tests. They are typically more accessible and convenient for routine check-ups and non-emergency medical care.
  • Diagnostic centres: These centres specialise in diagnostic testing and imaging services, such as X-rays, CT scans, MRIs, and laboratory tests. They work closely with hospitals and clinics to provide accurate and timely diagnostic results.

How do insurance companies choose network hospitals?

Insurance companies choose Network hospitals through a careful evaluation process. Here's an overview:

  1. Accreditation & patient ratings: Insurance companies assess the quality of care provided by hospitals. They look at factors such as accreditation, certifications, patient outcomes, infection control measures, and patient satisfaction ratings. Hospitals with a track record of delivering high-quality care are preferred as network hospitals.
  2. Advanced infrastructure and modern amenities: Insurance companies consider the infrastructure and facilities available at hospitals. This includes the availability of modern medical equipment, technology, and facilities for diagnostics, surgeries, and treatments. Hospitals with well-equipped facilities are more likely to be chosen as network hospitals.
  3. Expertise and specialisation in healthcare:: Insurance companies look for hospitals that have a wide range of medical expertise and specialisation. They consider the presence of renowned doctors, specialists, and healthcare professionals in various fields. Hospitals with specialists in different areas, such as cardiology, orthopaedics, oncology, and paediatrics, are valued as network hospitals.
  4. Urban and rural coverage: Insurance companies strive to create a network of hospitals that offers coverage in different geographical areas. They aim to have network hospitals in urban and rural locations, ensuring policyholders have access to healthcare services regardless of their location.
  5. Affordability and value for policyholders:: Insurance companies negotiate rates and discounts with network hospitals to ensure cost-effective healthcare for policyholders. They consider the hospital's pricing structure, transparency in billing, and willingness to offer discounted rates. Hospitals that provide affordable services without compromising on quality are preferred.
  6. Robust capacity and timely availability: Insurance companies assess the capacity and availability of network hospitals. They consider factors such as the number of beds, emergency services, operating theatres, and outpatient facilities. Hospitals with adequate capacity to handle patient volume and provide timely services are preferred.

By considering these factors, insurance companies aim to create a network of hospitals that offer high-quality care, wide-coverage, cost-effectiveness, and accessibility. This ensures that policyholders can avail themselves of cashless treatments and receive the necessary medical care without financial stress.

What are the limitations to keep in mind when it comes to network hospitals?

When considering network hospitals for healthcare coverage, it is important to be aware of certain limitations that may arise. These limitations can impact policyholders' choices and access to healthcare services.

  1. Limited choice of hospitals and doctors: Policyholders may have a restricted selection of hospitals and doctors within the network, which may limit their freedom to choose healthcare providers based on personal preferences or specific medical needs.
  2. Availability of network hospitals in rural areas: Network hospitals may be more concentrated in urban or semi-urban areas, which can pose challenges for policyholders residing in rural areas who may have limited access to network healthcare facilities.
  3. Potential waiting periods for pre-existing conditions: Some health insurance plans may impose waiting periods for pre-existing conditions, meaning that policyholders may have to wait for a certain period before receiving coverage for treatments related to those conditions, even at network hospitals.

How to find network hospitals

Contact your insurance provider:

  1. Reach out to your insurance provider through their customer service helpline.
  2. Inquire about the list of network hospitals associated with your health insurance plan.
  3. Provide your policy details and any specific preferences or requirements you may have.

Refer to your online portal or insurer app:

  1. Visit the insurance provider's official website or download their mobile application.
  2. Log in to your account using your credentials or create a new account if needed.
  3. Enter your location or desired area to generate a list of network hospitals nearby.
  4. Use filters, such as specialities or facilities, to narrow down your search.

Read your policy documents and contact the customer service helpline:

  1. Refer to your health insurance policy documents.
  2. Look for a dedicated section or annexure listing the network hospitals.
  3. Note down the names, addresses, and contact details of the network hospitals mentioned.
  4. Contact the insurance provider's customer service helpline if you can't find the required information.
  5. Request them to provide you with an updated list of network hospitals.

With the Nova Benefits mobile app, finding your network hospital is now easier than ever. You can discover network hospitals in just 2 minutes. Schedule a free consultation call with one of our experts to get a walkthrough of our mobile app and portal in just 20 minutes! Download the Nova Benefits app today and experience the convenience of accessing your network hospitals effortlessly.


  1. How do I find network hospitals associated with my health insurance?Insurance companies provide a list of network hospitals on their websites or through their customer service channels. You can also request the list from your insurance agent or consult the policy documents to identify the network hospitals available to you.
  2. Can I seek treatment at a non-network hospital if needed?While network hospitals are preferred for cashless treatment, some health insurance policies provide coverage for treatment at non-network hospitals. However, policyholders may have to bear the expenses initially and then claim for reimbursement as per the policy terms and conditions.
  3. Are all network hospitals of the same quality?Insurance companies carefully evaluate and select network hospitals based on quality parameters such as accreditation, infrastructure, medical expertise, and patient satisfaction. However, the quality may vary among network hospitals, and it is advisable to choose reputed hospitals within the network for the best healthcare experience.
  4. Can I change my network hospital preference during the policy period?Generally, network hospital preferences are fixed for the policy period. However, it is recommended to check with your insurance provider as some policies may allow limited flexibility to change hospitals under specific circumstances.
  5. Will all expenses be covered at a network hospital?Health insurance policies have coverage limits and terms and conditions. While treatment expenses at network hospitals are usually covered as per the policy terms, it is essential to understand the coverage limits, co-payments, deductibles, and exclusions mentioned in your policy document.
  6. Can I receive emergency medical care at a network hospital even if it is not my designated hospital?Yes, in case of emergencies, policyholders can receive treatment at the nearest network hospital, even if it is not their designated hospital. Most insurance companies have provisions to cover emergency medical care outside the designated network hospital. However, it is recommended to inform the insurance company at the earliest to ensure a smooth claims process.
  7. Can a network hospital transfer a patient to a non-network hospital during treatment?Network hospitals generally have the necessary facilities and specialists to handle various medical situations. However, in rare cases where specialised treatment is required, a network hospital may transfer a patient to a non-network hospital. It is important to understand the transfer policies and consult your insurance company to ensure coverage continuity.

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