The Kenya Association of Private Hospitals (KAPH) has issued a seven-day ultimatum to the National Health Insurance Fund (NHIF) and the Social Health Authority (SHA) to settle outstanding debts owed to its member hospitals.
In a recent statement, Dr. Eric Musau, Chairperson of KAPH, emphasized the urgency of the situation, stating that failure to fulfill payment obligations would result in private hospitals suspending services to NHIF beneficiaries.
He stated, “We have issued a 7-day demand notice to NHIF/SHA to release all funds owed to members as per our contractual agreements which is 60 days after service offering.
Our members shall stop services to NHIF beneficiaries should the fund not honor the payments as stipulated in hospital contracts.”
Musau highlighted the financial strain experienced by member hospitals due to delayed reimbursements, noting that despite ongoing engagements with NHIF, the funds received were inadequate to sustain operations.
He mentioned, “Our member hospitals have been forced to take expensive credit, lay off workers, and default on supplier payments to continue offering care to NHIF beneficiaries.”
Reports have surfaced regarding the adverse effects of delayed payments, with some facilities being compelled to reduce services or even close down entirely.
This predicament has exacerbated the challenges faced by private hospitals, leading to operational disruptions and financial instability.
The concerns raised by private hospitals come amidst recent warnings from Health Cabinet Secretary Susan Nakumicha regarding fraudulent practices and overcharging by healthcare providers.
Nakumicha reiterated the government’s commitment to addressing such malpractices, emphasizing the need for transparency and accountability within the healthcare sector.
Furthermore, the impending transition to the Social Health Insurance Fund (SHIF) in July 2024 adds another layer of complexity to the ongoing situation.
The Health Ministry has announced plans to streamline the transfer of contributions from NHIF to SHA, aiming to ensure continuity of coverage for beneficiaries.
As private hospitals demand prompt settlement of outstanding dues, stakeholders are urged to prioritize dialogue and cooperation to mitigate the impact on healthcare delivery.
The resolution of these financial challenges is crucial to safeguarding the interests of both healthcare providers and patients under the NHIF scheme.
