BPKIHS warns services lapse without health insurance agreement renewal

KATHMANDU: BP Koirala Institute of Health Sciences (BPKIHS) has warned that services under the government’s national health insurance programme will automatically lapse after July 15, 2025, unless its expiring agreement with the Health Insurance Board (HIB) is renewed.

The current agreement, signed on July 16, 2017, is due to expire on July 16, 2025. BPKIHS formally submitted its renewal proposal on June 4, 2025, urging settlement of approximately Rs 745 million in outstanding claims and amendments to practical aspects of the contract, based on HIB’s circular of May 26, 2025. Despite direct engagement between institute officials and HIB counterparts, no formal response or concrete action on overdue payments has been received.

Since the original agreement, BPKIHS has continuously provided quality care to insured beneficiaries without interruption, prioritising its social responsibility even as the unpaid-claims liability has mounted.

As an autonomous academic and healthcare provider, BPKIHS finances all operations—including staff salaries, benefits and hospital running costs—from internal resources. The delay in HIB reimbursements has precipitated a severe financial crisis at the institute, reads a statement by the health institution.

In an effort to resolve the impasse, BPKIHS has coordinated with local government bodies, political representatives, social workers and intellectuals, but no concrete solution has emerged. Internal consultations with departmental and branch heads produced recommendations to discontinue the programme; however, BPKIHS remains committed to its long-term social mission and intends to continue the scheme, reads the statement.

The institute has urged renewed dialogue and cooperation to address the seriousness of the situation and pledges to issue a further public notice should the health insurance programme be able to resume.