A recent report has revealed that nearly half of Kenya’s health facilities have not yet fully transitioned to the Social Health Authority’s (SHA) e-contracting platform, which was introduced to improve transparency and streamline health sector operations. As of January 21, only 2,130 of the 12,190 licensed health facilities in Kenya had successfully completed the registration process, leaving a significant gap in adoption, especially among county government and private health providers.
The e-contracting system was launched to automate and standardize the contracting process across health facilities. By requiring facilities to register with the Kenya Medical Practitioners and Dentists Council (KMPDC) using their license number as a unique identifier, the platform was designed to enhance efficiency and reduce administrative burdens. However, the rollout has been far from smooth, with many facilities still struggling to join the platform.
County government-run health facilities are particularly lagging in adopting the e-contracting system. Out of 1,366 county-run facilities, only 536 have fully registered, leaving 830 facilities still in the process of registration. This delay is not limited to public sector facilities. Private health providers are also facing challenges, with 872 out of 2,244 private facilities yet to complete their registration.
Brian Lishenga, the chairperson of the Rural-Urban and Private Hospitals Association (RUPHA), highlighted several issues contributing to the slow adoption among private health providers. Among the key challenges are incorrect Master Facility Listing (MFL) codes and problems with the KMPDC categorization of facilities. These issues are not only creating delays in the registration process but also affecting cash flow for health facilities, with payments being delayed as a result.
The financial implications of these delays are significant. According to RUPHA’s findings, more than 50% of health facilities reported receiving payments that covered less than 20% of their total claims. In contrast, only 6% of facilities received reimbursements for over 80% of their claims. Primary care facilities, which typically serve a larger portion of the population, are especially hard hit. Many are receiving reimbursements of less than Sh50,000, which has worsened their financial difficulties.
Despite the hurdles, the SHA’s e-contracting platform has the potential to revolutionize the Kenyan health sector by improving efficiency, reducing fraud, and enhancing accountability. The platform is designed to ensure that all health facilities are treated equally, streamlining the reimbursement process for both private and public providers. However, the slow adoption and technical issues faced by many facilities are preventing the full realization of these benefits.
The report from SHA underscores the importance of addressing the challenges hindering full implementation. For the platform to achieve its objectives, there is an urgent need for increased support and training for health facilities, particularly in the counties. Additionally, resolving issues with MFL codes and KMPDC categorization would go a long way in ensuring a smoother adoption process.
As Kenya works toward universal health coverage, the successful integration of the e-contracting platform will be crucial in achieving more efficient and transparent healthcare systems. However, addressing these obstacles is critical for ensuring that all health facilities, especially those in underserved areas, can fully benefit from the system’s potential.
In conclusion, while the SHA’s e-contracting platform holds great promise, overcoming the current challenges is essential for realizing its full potential. With the right support and resources, Kenya’s health sector can take a significant step toward greater transparency, improved financial management, and enhanced healthcare delivery.
