Narayana Health forays into insurance, planning comprehensive healthcare coverage

Bengaluru-based private hospital network Narayana Health has received approval from the Insurance Regulatory and Development Authority (IRDAI) to set up its wholly-owned subsidiary Narayana Health Insurance.

Sharing details on the new venture with CNBC-TV18, Viren Shetty, Executive VC at Narayana Health, said the company plans to start with a small launch in Mysore sometime in May.

The plan is to run a targeted, narrow network, which will cover a very large spectrum of care.

"As a healthcare provider, when we think of insurance, we think health services first, not about selling our plan,” he stated.

The announcement comes at a time when the Supreme Court is contemplating measures to standardise hospital rates and ensure price transparency under the Clinical Establishments Act.

Consumer Affairs Secretary Rohit Kumar Singh also recently told CNBC-TV18 about concerns over unfair practices in healthcare and pharma and the need for systemic changes.

He also talked about the need for changes in mandatory 24 hours hospitalisation clause.

Shetty acknowledged the necessity of transparency in healthcare pricing, but cautioned against a one-size-fits-all approach.

He said the complexities of India's healthcare landscape with its diverse patient demographics and payer categories needs to be considered before making any major changes.

Shetty also highlighted the evolving nature of healthcare delivery, citing advancements such as robotic surgeries and enhanced ICU care that have significantly reduced hospitalisation durations.

He underscored the need for insurance policies to adapt to these changes, recognising day-care procedures as a substantial component of modern healthcare delivery.

Narayana Health has a market capitalisation of ₹25,443.94 crore. Its shares have gained 63% over the last year