Sixteen insurance companies will stop all dealings with six private medical facilities in Dubai as a result of those hospitals increasing prices of services by up to 20 per cent.
According to a report in Emarat Al Youm, the insurance companies stated that the move comes based on the recommendation of Dubai Health Authority (DHA) which obliges medical facilities not to effect unwarranted hikes in prices of its services.
Officials at the insurance companies confirmed to the newspaper that they were forced to take such a measure after it was discovered that the increases in prices were unwarranted.
“This unwarranted increase has a negative impact on patients who bear a percentage of the cost of treatment.
Essa Al Maidoor, Director General, of Dubai Health Authority (DHA), said, “The DHA has recommended that healthcare providers in the private sector not raise prices of services at the beginning of next year.
“Most of health facilities complied with these recommendations and some did not.”
He stressed that DHA is going to apply a new mechanism and system in the first quarter of 2013 to control the health insurance sector.
He added that the DHA will review unjustified hikes in prices of health insurance policies according to studies of inflation and best global practices in the field of health insurance.
For legal reasons the medical entities affected cannot be named.