The Kenya Association of Private Hospitals (KAPH) has issued a stern 7-day ultimatum to both the National Health Insurance Fund (NHIF) and the Social Health Authority (SHA) demanding the immediate release of outstanding funds owed to its member hospitals.
According to Dr. Eric Musau, the Chairperson of KAPH, failure on the part of NHIF to fulfill these payments will result in private hospitals ceasing to provide services to NHIF beneficiaries. Dr. Musau emphasized that the demand is based on contractual agreements stipulating that payments should be made within 60 days of service provision.
Dr. Musau further stated that despite engaging NHIF in discussions regarding the delayed payments, the funds remitted were insufficient, causing significant operational challenges for member hospitals. Many hospitals were compelled to resort to costly credit arrangements, lay off staff, and default on supplier payments in order to continue offering care to NHIF beneficiaries.
Moreover, Dr. Musau highlighted that the inadequate remittances from NHIF have led to the closure of some hospital operations or even entire hospitals due to the inability to cover the costs of services provided.
In related news, on January 2, 2024, Health Cabinet Secretary Susan Nakumicha cautioned private hospitals against issuing counterfeit patient records. Speaking at Lugulu Mission Hospital in Bungoma, Nakumicha warned of punitive measures against hospitals found to be overcharging patients who are beneficiaries of the NHIF scheme.
Looking ahead, the impending transition to the new Social Health Insurance Fund (SHIF) in July 2024 is anticipated to replace NHIF. The Ministry of Health has announced that contributions previously made to NHIF will be automatically transferred to the Social Health Authority (SHA), ensuring continuity in healthcare coverage.
