The Kenya Association of Private Hospitals (KAPH) has served a seven-day notice to the National Health Insurance Fund (NHIF) and the Social Health Authority (SHA) to release funds owed to its member hospitals.
In a statement, KAPH Chairperson Dr. Eric Musau stated that if the NHIF does not honour the payments, private hospitals will cease to provide services to NHIF beneficiaries.
“We have issued a 7- day demand notice the 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 honour the payments as stipulated in hospital contracts,” reads the statement.
Musau stated that KAPH contacted NHIF to discuss the delayed payments; however, the funds remitted were insufficient, and hospitals were unable to continue operations.
“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,” he added.
“NHIF has been remitting very little portions of money owed which is not able to sustain operations. We have received reports of facilities closing some hospital operations or closing hospitals completely due to non-payment for services offered.”
On January 2, 2024, Health Cabinet Secretary Susan Nakumicha warned private hospitals not to issue forged patient records.
Nakhumcha spoke at Lugulu Mission Hospital in Bungoma, where she stated that hospitals that overcharge NHIF beneficiaries will face consequences.
In July 2024, the new Social Health Insurance Fund (SHIF) will take over from the NHIF. The Health Ministry has since announced that any contributions made to NHIF will be automatically transferred to the Social Health Authority (SHA).