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Administration Charges

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20 Jul, 2021 by  Slimy Okra

My mother had bypass surgery recently. We were charged Rs. 4.4 lakhs, out of which Rs. 40, 000 were under administration charges (10 % of the total billed amount). Is it common practice for hospitals to collect administration charges and more importantly is it covered by insurance companies?


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Health Insurance

2 Answer

20 Jul, 2021
Self Employed - Digital Consultant

Yes, it is common practice for hospitals to charge administration fee per patient.

Health insurance doesn't cover the admin charges.


Asad Akbar

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20 Jul, 2021
Co-founder, SureClaim


There is no standard billing practice among private hospitals in India or even within a region. Infact within the same hospital chain you might come across different pricing philosophies.

Coming to your 2nd question, Administration charges are excluded expenses, i.e. not payable in claims. Practices vary. Some hospitals charge 500-2000 as this fee. I am myself surprised to see such a massive administration charge of 40k.

If you are okay to share, do send me soft copy of the bill to, for my personal learning :)

Anuj Jindal

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