Kenyan Govt Fails to Release SHA Payments, Private Hospitals Demand Civil Servants Pay Cash
- Private healthcare providers across the country are set to suspend SHA services for civil servants, citing massive debt
- The Kenya Healthcare Federation (KHF) wrote a letter to the SHA CEO, Mercy Mwangangi, explaining the dire situation
- SHA is facing serious financial challenges due to a funding shortage and a multi-billion-shilling debt inherited from the now-defunct NHIF
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TUKO.co.ke journalist Japhet Ruto brings over eight years of experience in financial, business, and technology reporting, providing deep insights into both Kenyan and global economic trends.
After the Kenyan government failed to release Social Health Authority (SHA) funds for nine months, private hospitals nationwide would no longer serve governmental officials unless they paid cash.
Source: Twitter
The move will affect all civil servants, except police officers and teachers, unless the SHA and the Ministry of Health intervene.
What did private healthcare providers demand?
The Kenya Healthcare Federation (KHF) notified the SHA chief executive officer (CEO), Mercy Mwangangi, that private healthcare providers are no longer able to bear the cost of treating public employees without reimbursement from the government's health insurance scheme.
"Providers will have no choice but to ask public servants to pay for past and future medical bills directly, and then seek reimbursement from their employers and/or the SHA, unless the outstanding claims are settled under the contractual terms," KHF chairperson, Kanyenje Gakombe, wrote in a letter dated Thursday, August 7, as reported by Daily Nation.
KHF's statement that it cannot maintain credit to public officers might be a turning point in the relationship between the government's health insurance programme and private healthcare providers.
Why did Kenya Healthcare Federation lament?
The federation clarified that the financial strain caused by the extended non-payment had impacted private healthcare facilities.
The letter emphasised how hospitals have been compelled to use their own resources to continue servicing public servants, stating that providers can no longer use their resources, including savings, bank facilities, and supplier credit.
KHF noted that the situation had put private healthcare professionals under an unmanageable load.
How did Mwangangi respond?
Mwangangi replied to the providers via email, stating that the authority is addressing the payments.
"This communication has been noted. SHA is working to expedite all payments for claims that have been approved," she said.
Source: Twitter
Health CS Aden Duale objected to the federation's letter being shared with the media during a press conference held at Afya House on Friday, August 8.
"Let the individual go to the CEO's office and explain the issue. We don't use press conferences for internal communications. Let them deal with SHA directly if the facility has not been paid," he stated.
Why is SHA facing financial challenges?
Earlier, TUKO.co.ke reported that SHA faced serious financial challenges, due to a funding shortage and a KSh 30.9 billion debt inherited from the now-defunct NHIF.
Government agencies owe SHA KSh 25 billion, according to Medical Services Principal Secretary Harry Kimtai.
Furthermore, only 4 million of the 18 million registered SHA members regularly pay their monthly premiums.
In February, over 600 hospitals in Kenya under the Rural-Urban and Private Hospitals Association of Kenya (RUPHA) suspended SHA services due to outstanding arrears.
Proofreading by Asher Omondi, copy editor at TUKO.co.ke.
Source: TUKO.co.ke
