Patients at hospital. The Health Insurance Board has decided to suspend health insurance services at private hospitals, except for emergency cases, starting from Jestha 16 (May 29). The board cited an outstanding payment of 1.6 billion rupees to service provider institutions and an escalating financial crisis as the reasons for this decision. Consequently, insured citizens across the country may face disruptions in regular services such as outpatient department (OPD) visits and surgeries at private hospitals and medical colleges.
The government has reduced health insurance services at private hospitals amid serious challenges in the health insurance program. The Health Insurance Board announced that all insurance services at private hospitals, excluding emergency care, will be suspended from Jestha 16 until further notice due to worsening financial difficulties. This information was made public on Thursday.
The decision was made during the board’s meeting held on Jestha 11, 2083 (May 24, 2026). As a result, hundreds of private hospitals and medical colleges affiliated with the health insurance program nationwide are expected to limit services such as OPD consultations, diagnostic tests, surgeries, medications, and other routine care for insured individuals. Emergency services will continue as usual, the board confirmed.
Initiated by the government to ensure healthcare access for all citizens, the health insurance program now faces severe financial instability, payment backlog, and administrative weaknesses. Payment of billions owed to private hospitals has been stalled for years, and under this pressure, the board has been compelled to reduce services, sources indicate.
