In a stunning blow to the nascent system of Third Party Administrators (TPA) in the health insurance industry, the Surat Medical Consultants Association (SMCA) has passed a resolution boycotting any TPA network that offers to provide a cashless service.

A copy of the resolution passed at an extraordinary general body meeting of SMCA recently, was faxed to the Association of Medical Consultants (AMC) of Greater Mumbai a few days ago.

The text of the resolution says, “It was unanimously resolved that no member of SMCA will join the TPA network to provide cashless service to any Mediclaim policy holder. Those members who have been part of the TPA network shall withdraw their affiliation with immediate effect. Their withdrawal letters, addressed to the concerned TPA should be submitted to the president or secretary, SMCA by June 25th 2003. The SMCA will in turn forward such withdrawals to the concerned TPA. Failure to do so, on the part of members, will invite punitive actions.

“The insurance committee formed by the SMCA will seek meetings with the trustees of various trust hospitals of Surat to convince them to withdraw from the TPA network to provide cashless service to the Mediclaim policy holder.

“The members of SMCA are hereby advised to carry on rendering their services to the Mediclaim policy holders as in the past (except cashless service).”

While it is not yet known what reaction the resolution has evoked from the local doctors, veteran members of the AMC, Mumbai have welcomed the move as a step in the right direction, as they too have been facing a lot of problems with the TPAs.