CRISIS

Senators probe NHIF's billions in pending bills

Move comes in the wake of a massive uproar by the public and private facilities over delayed reimbursements

In Summary
  • Senators have opened investigations into the delayed remittance of billions of shillings to health facilities across the country by the National Health Insurance Fund.
  • The development comes in the wake of a massive uproar by public and private facilities over delayed reimbursements of more than Sh6 billion by the insurer.
NHIF headquarters in Nairobi.
BAD GOVERNANCE: NHIF headquarters in Nairobi.
Image: FILE

Senators have opened investigations into the delayed remittance of billions of shillings to health facilities across the country by the National Health Insurance Fund.

The development comes in the wake of a massive uproar by the public and private facilities over delayed reimbursements of more than Sh6 billion by the insurer.

Some facilities have withdrawn services to NHIF card holders, leading to misery and suffering of patients.

In the probe being conducted by the Senate’s Health Committee, the lawmakers seek to establish the reasons for the inordinate delays to send cash to the facilities.

This is despite the monthly deductions of contributions from Kenyans’ salaries towards the fund.

“The committee should state reasons for the delay by the NHIF to remit funds to health facilities, which has disrupted operations in several health facilities,” Meru Senator Kathuri Murungi said.

The Senate Deputy speaker sought the probe on the floor of the House.

Murungi said the delayed remittance of the funds has caused the withdrawal of services by health facilities to beneficiaries of the fund.

The lawmaker wants the committee chaired by Uasin Gishu Senator Jackson Mandago to explain plans in place to ensure NHIF settles all arrears even as the Social Health Insurance Fund is operationalised.

“The committee should outline measures instituted by the government to curb fraudulent claims and abuse by SHIF that characterise the NHIF,” the senator said.

Recently, the Rural Private Hospitals Association and the Kenya Association of Private Hospitals said they had pulled out of the NHIF.

The move, they said, was occasioned by failure by the insurer to remit in excess of Sh6 billion to their facilities. The debts have accumulated over the years.

Rupha disclosed that NHIF owes its members Sh2.3 billion for general claims, Sh2 billion for the Linda Mama Programme and Sh1.8 billion for outpatient claims.

The debts have crippled the facilities, rendering them unable to procure essential supplies and provide proper services.

Appearing before MPs last month, Health CS Susan Nakhumicha said the delayed remittances have been occasioned by the National Treasury that has remained non-committal in disbursing an outstanding Sh29 billion.

“I can’t give timelines on when the funds will be released unless the Treasury has given the commitment. We are tied on the areas identified but they have assured to release Sh2 million by the end of next week,” Nakhumicha had said.

The CS added that the cash crisis at NHIF has been caused by poor contributions to NHIF and the National Treasury’s delay to the insurer.

The government owes NHIF Sh32 billion as cover for civil servants while the money the fund collects in member contributions and from private entities is insufficient to offset what the health facilities are owed.

Nairobi Senator Edwin Sifuna said NHIF owes most, if not all, health facilities in Nairobi.

He cited Pumwani Hospital which is owed Sh15 million for general claims and Sh182 million for Linda Mama programme.

“At the same time, at Pumwani Hospital, we have had to shut down some wards, for example, ward five and six because of the shortage of staff thus, reducing the capacity of the hospital,” he said.

At Mama Lucy Kibaki Hospital, the Linda Mama Programme owes the facility Sh120 million while the NHIF owes Sh178 million.

“At the same time, we have a stalled neo-natal Intensive Care Unit construction with a pending bill of Sh50 million. This is what has led to the contractor abandoning the site at Mama Lucy Kibaki Hospital,” Sifuna said.

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