The Kenya Association of Private Hospitals (KAPH) has taken a decisive stand against what they perceive as delayed payments from the National Health Insurance Fund (NHIF) and Social Health Authority (SHA). Dr. Eric Musau, the Chairperson of KAPH, has issued a stern ultimatum, giving a 7-day notice for the release of funds owed to member hospitals.
In a statement addressing the matter, Dr Musau emphasized the critical importance of honouring contractual agreements, highlighting that payments should ideally be made within 60 days after services are rendered. Failure to comply with this stipulation, he warned, would result in private hospitals ceasing to provide services to NHIF beneficiaries.
The situation has reached a critical juncture as member hospitals struggle to maintain operations due to the delayed funds. Dr. Musau revealed that despite engaging in discussions with NHIF, the remitted funds were insufficient to sustain hospital activities. This financial strain has led to hospitals resorting to expensive credit, layoffs, and even defaulting on payments to suppliers.
Reports have emerged of some facilities being compelled to reduce their operations or shutter entirely due to the financial strain caused by non-payment for services provided. Such closures not only jeopardize the healthcare services available to NHIF beneficiaries but also endanger the livelihoods of hospital staff.
Adding to the complexity of the situation, Health Cabinet Secretary Susan Nakumicha issued a warning on January 2, 2024, cautioning private hospitals against issuing fake patient records. She emphasized that action would be taken against any hospital found guilty of overcharging NHIF beneficiaries.
Private hospitals to cut off NHIF Beneficiaries
In the backdrop of these developments, the impending transition from NHIF to the Social Health Insurance Fund (SHIF) looms large. Set to take effect in July 2024, this transition has raised questions about the fate of contributions made to NHIF. The Health Ministry has sought to allay concerns by announcing that contributions would be seamlessly transferred to the newly established Social Health Authority (SHA).
Finally, as the deadline set by KAPH approaches, the ball is now in the court of NHIF and SHA to address the grievances of private hospitals. Failure to do so risks disrupting healthcare services for NHIF beneficiaries and exacerbating the strain on the already fragile healthcare system.
