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CGHS rates and whether accreditation pays for itself

CGHS pays accredited and non-accredited hospitals differently. Whether pursuing accreditation is worth it is arithmetic, and it goes both ways.

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Government schemesIndiaUpdated Aug 2026

In short

CGHS applies a rate differential between NABH-accredited and non-accredited hospitals. Whether accreditation pays depends on your actual CGHS volume multiplied by the uplift, set against the cost of accreditation and the ongoing documentation burden it imposes — not on whether accreditation is desirable in principle.

The calculation, with your own numbers

Take your CGHS case volume for the last twelve months, by procedure. Apply the rate differential to each. That is the annual gross uplift.

Against it: the cost of achieving accreditation, and — the figure most hospitals omit — the recurring cost of maintaining the documentation standard it requires. That second number is staff time, every month, forever.

Where it clearly pays

A hospital with substantial CGHS or state scheme volume, in a city with a large pensioner population, where the uplift applies across most of the case mix.

Delhi NCR is the obvious case. The concentration of CGHS beneficiaries there makes the differential material at almost any hospital size.

Where it clearly does not

Low CGHS volume, a case mix where the differential applies to few procedures, and a documentation function already stretched.

Pursuing accreditation for the rate uplift alone in that situation is a project that costs more than it returns. There may be other reasons to pursue it; this is not one.

The second-order effect

Accreditation raises documentation standards across the whole hospital, not just for CGHS cases. That improves claim outcomes with private payers too, because documentation deficiency is the most cited rejection ground everywhere.

This is real but hard to size in advance. Treat it as upside rather than as part of the business case.

Running the numbers on your own case mix

Pull twelve months of CGHS cases by procedure. Apply the accredited rate against the non-accredited rate for each. The total is your annual gross uplift, and it is the only figure in this decision that is genuinely yours.

Against it, count two costs rather than one: the accreditation project, and the recurring documentation burden afterwards. The second is staff hours every month, indefinitely, and it is the number most business cases omit.

If the uplift clears both comfortably, the decision is straightforward. If it is marginal, accreditation may still be worth pursuing — but for clinical governance reasons, not this one.

Do not include the improvement in private claim outcomes in the case. It is real, because documentation deficiency is the most cited rejection ground everywhere, but it cannot be sized in advance. Treat it as upside.

Questions we get asked

Does NABH accreditation pay for itself?

Only above a certain CGHS volume. Calculate the rate uplift against your actual case mix, plus the recurring documentation cost — not just the accreditation project cost.

Where does it clearly pay?

Hospitals with substantial CGHS volume, particularly in Delhi NCR where pensioner concentration is highest.

Are there benefits beyond the rate?

Yes — documentation standards rise across the hospital, which improves private claim outcomes too. Treat that as upside rather than as the business case.

See it against your own claims

Twenty settled claims, showing what was disallowed, how much was predictable and how much the payer never explained. About an hour of your team’s time.

The mechanism above, on your own numbers.

Nothing on this page is a promise. Bring a month of settlements and we will read them with you.