Private hospitals will cease providing services to NHIF beneficiaries.

The Kenya Association of Private Hospitals (KAPH) has issued a 7-day ultimatum to the National Health Insurance Fund (NHIF) and the Social Health Authority (SHA) demanding the release of outstanding funds owed to its member hospitals.

Dr. Eric Musau, Chairman of KAPH, stressed that failure to honor these payments will result in private hospitals ceasing to provide services to NHIF beneficiaries.

In a statement Dr. Musau stressed, “We have given NHIF/SHA a 7-day ultimatum to release all funds owed to our members in line with our contractual agreements which stipulate payment within 60 days of service provision.

If NHIF fails to meet these obligations set out in our contracts, our member hospitals will cease to provide services to NHIF beneficiaries.”

Despite the NHIF’s involvement in the discussions on delayed payments Dr.

Musau noted that the funds remitted so far have been insufficient, hampering the operation of the hospital.

He further explained: “Our member hospitals have been forced to resort to costly loans, lay off staff and default on payments to suppliers in order to continue providing care to NHIF beneficiaries.”

Dr. Musau expressed concern over the transfer of insufficient funds by the NHIF, which has resulted in some facilities curtailing operations or even shutting down altogether due to non-payment for services rendered.

On 2 January 2024, Health Cabinet Secretary Susan Nakumicha issued a warning to private hospitals about the release of fraudulent patient records.

Speaking at Lugulu Mission Hospital in Bungoma, she confirmed that action would be taken against hospitals found to be overcharging patients enrolled in the NHIF scheme.

In a related development, the NHIF is set to replace the new Social Health Insurance Fund (SHIF) in July 2024.

The Ministry of Health has announced that contributions made to the NHIF will be automatically transferred to the Social Health Authority (SHA).