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Bir Hospital Cuts Back on Health Insurance Benefits Amid Financial Crisis

Feb 13, Kathmandu - Bir Hospital has announced a reduction in services available through health insurance, impacting long-term patients. Previously, insured patients suffering from chronic illnesses could receive three months' worth of medication at a time. However, starting from Falgun 1, the hospital will now provide only one month’s medication per visit, unless alternative arrangements are made.

The new policy will be effective from Falgun 1 (mid-February). An official notice states, “Until further notice, insured members will be provided with medication only for one month at a time.”

Hospital Director Dr. Dilip Sharma explained that the decision was driven by unpaid dues from the Insurance Board. He revealed that the hospital still owes over NPR 4 billion in insurance payments, which has severely hampered service delivery.

“Vir Hospital is a hospital for the poor, and shutting down services would severely affect patients,” Dr. Sharma said. He added that procurement of medicines remains the biggest challenge, citing delays in government disbursements.

“The government’s lack of funds means we cannot purchase medicines or equipment,” he lamented. “It’s becoming increasingly difficult to sustain services.”

The health insurance program is currently facing an acute financial crisis. Major hospitals have started to suspend services due to unpaid claims for treatments provided over the past months.

According to the Insurance Board, more than NPR 11 billion remains outstanding to registered health institutions until the end of Ashadha. This backlog not only deprives insured citizens of essential services but also threatens the very continuation of the health insurance scheme.