Vihiga has moved to ring-fence revenue generated by public health facilities to improve services.
It has established the Facility Improvement Fund to allow public hospitals to collect, retain and spend the revenue they generated.
This is through the Vihiga County Facilities Improvement Financing Act 2025, which Governor Wilbur Ottichilo assented to on May 9.
“Health facilities can now spend revenue at the source, thereby enhancing efficiency and service delivery,” Ottichilo said during his address to health facility heads.
Previously, funds collected by health facilities were remitted to the county treasury and only disbursed through the annual budget process.
This system often led to delays, which the county blames on erratic disbursements by the Exchequer.
The facilities raise revenue from user fees, insurance reimbursements, government allocations and donor support.
The aim is to ensure the funds are ploughed back to guarantee quality and uninterrupted services.
This means the more than 75 public health facilities in the county will manage their respective bank accounts, ensuring transparent and accountable spending that ensures value for money.
The Act establishes a robust governance framework, including the formation of county and subcounty health management teams, hospital management boards and facility management committees.
Each has clearly defined roles in planning, oversight and community representation.
Ottichilo said the new law reforms the financing, governance and accountability in public health institutions to improve service delivery.
He added that the retained funds will be used for operational costs, emergency needs and quality improvements.
The governor urged managers to work closely with local communities to recruit and register their catchment populations under the Social Health Authority.
He said this will enable facilities to generate revenue through SHA reimbursements for services offered, ensuring financial sustainability.
The governor also called on all stakeholders to support efforts to increase SHA registration.
Future reimbursements to healthcare facilities will depend on the number of patients treated under the scheme.
“Health remains our top priority for the well-being of our people through the provision of affordable, available and accessible healthcare services,” Ottichilo said.
“SHA will be crucial to this success.”
INSTANT ANALYSIS
The Department Of Health is the leading revenue stream in the county. However, the revenue generated in most cases ends up in other departments, which affects services. The new kitty will now ensure money generated by the hospital is ploughed back to improve services. The fund will also cushion hospitals from erratic disbursements by the Exchequer.
