Private hospitals in Kenya are calling on the Ministry of Health and the newly formed Social Health Authority (SHA) to initiate urgent dialogue aimed at resolving the growing issue of unpaid claims. The Kenya Association of Private Hospitals (KAPH) has raised concern that the non-settlement of claims under the National Health Insurance Fund (NHIF) is jeopardizing the sustainability of private healthcare services across the country. This appeal follows recent remarks by Principal Secretary for Medical Services, Harry Kimtai, who warned that private hospitals risk having their licenses revoked if they continue to protest and halt services over unpaid dues.
KAPH maintains that while private healthcare facilities are dedicated to supporting the government’s Universal Health Coverage (UHC) agenda, the burden of delayed NHIF reimbursements has placed immense financial pressure on their ability to deliver essential services. In a statement, the association revealed that many hospitals are owed substantial sums of money, with some facilities awaiting payment of over KSh10 million. These funds, KAPH emphasized, are crucial for routine operations, including procurement of medical supplies and timely payment of healthcare workers. The ongoing delays, they warned, are threatening not only the existence of private hospitals but also the stability of the broader healthcare system.
According to KAPH, rather than addressing these legitimate concerns, the Ministry of Health has responded with ultimatums, which the association sees as detrimental to the collaborative spirit needed to make UHC a reality. They described the government’s threats to shut down non-compliant facilities as heavy-handed, especially given that private hospitals have continued to serve patients despite enduring financial strain. The association stressed that sustainable healthcare cannot be achieved without the government fulfilling its obligations to service providers, particularly in settling outstanding NHIF claims.
Principal Secretary Kimtai, however, took a firm stance, criticizing hospitals that have reduced or halted services in protest over the unpaid claims. He accused some private facilities of leveraging the situation to exert undue pressure on the government, suggesting that such actions amount to blackmail. Kimtai noted that the government had been open to negotiations since 2016 and insisted that service providers should not disrupt healthcare delivery to Kenyans while financial matters are being resolved. He warned that hospitals failing to comply with regulations, including those under the SHA, could face revocation of licenses or outright closure.
As tensions rise, the dispute underscores the complex challenges involved in transitioning to the SHA framework while ensuring continuity in health services. KAPH insists that dialogue, rather than confrontation, is the only path forward. They are urging the Ministry of Health to recognize the indispensable role private hospitals play in delivering care to millions of Kenyans and to engage constructively in resolving the financial disputes that threaten to derail this partnership. Without immediate action to clear the outstanding claims, the association warns, private hospitals may be forced to reduce services further or shut down entirely, putting additional strain on the already burdened public health sector.
