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Tuesday, February 25, 2025

Healthcare Crisis: Private Hospitals Suspend SHA Services Due to Ksh 30B Debt

Private hospitals across Kenya have indefinitely suspended services under the Social Health Authority (SHA) and Medical Administration Kenya Limited (MAKL), citing mounting unpaid arrears and financial instability.

In a statement on Monday, February 24, the Kenya Association of Private Hospitals (KAPH) announced the decision, blaming inefficiencies in the transition from NHIF to SHA and the absence of a clear reimbursement framework for outpatient services.

“This decision comes in response to persistent financial instability that has placed the quality, accessibility, and sustainability of healthcare services at grave risk due to unresolved inefficiencies in the NHIF-SHA transition, an unclear operational and reimbursement framework for outpatient services, outstanding NHIF arrears amounting to Ksh 30 billion, and long-standing unpaid claims under MAKL,” KAPH chairman Erick Musyima stated.

Musyima explained that the association took this step after months of unsuccessful negotiations with the government. He warned that the crisis now threatens the survival of private hospitals, which serve more than 52% of Kenya’s population.

“This is not a decision we have taken lightly. It follows months of unsuccessful negotiations with government authorities, repeated unfulfilled promises from MAKL, and an increasing financial burden that now threatens the very survival of private healthcare facilities across Kenya,” he said.

KAPH further warned that the crisis is jeopardizing Kenya’s progress toward Universal Health Coverage (UHC) and weakening key pillars of the World Health Organization’s (WHO) healthcare framework.

Despite the suspension, KAPH expressed its willingness to engage in dialogue with the government to resolve systemic failures and prevent further deterioration of healthcare services.

“The sustainability of private hospitals and the health and well-being of millions of Kenyans depend on immediate action,” the statement concluded.

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