State to settle Sh30b NHIF debt amid shift to new health fund
JANE NGUGI- KNA
The Government will settle the Sh30 billion owed to hospitals by the defunct National Health Insurance Fund (NHIF) as part of the ongoing transition to the Social Health Insurance Fund (SHIF).
Medical Services Principal Secretary Mr. Harry Kimtai stated that Sh4.5 billion has already been released to health facilities, with an additional Sh4.5 billion to be disbursed later this week.
Mr. Kimtai announced that the government has committed to paying healthcare facilities Sh9 billion by the end of November.
He added that the State has directed County Commissioners and County Executive Committee Members (CECMs) responsible for health services to ensure that fully paid members of the Social Health Insurance Fund (SHIF) are not denied services.
Speaking in Nakuru after meeting County Commissioners and CECMs from the 14 counties in Rift Valley, the Principal Secretary advised Kenyans registered with SHIF to upload their dependents’ names on the fund’s portal to ensure they can access benefits whenever needed.
Mr Kimtai stated that the move to settle the Sh30 billion is a crucial step to maintain the health facilities’ trust and cooperation under SHIF. He pledged that the remaining payments will be made progressively, based on the availability of funds.
Hospitals and other healthcare providers were hesitant to shift to SHA due to the financial strain caused by unpaid claims. The Principal Secretary indicated that a national steering committee that brings on board all stakeholders in the health sector had been formed to help smoothen transition from NHIF to SHIF.
“We acknowledge there have been glitches during transition to the new SHIF, but we want to assure Kenyans that we are ironing out the challenges and soon operations at the new fund will run seamlessly.
“The government is committed to ensuring that every Kenyan gets quality and affordable health care,” the Principal Secretary said.
According to the management of some of the hospitals, the outstanding amounts have created operational challenges, with some facilities forced to delay services or find alternative means to stay afloat.
As part of the transition, Mr Kimtai reassured stakeholders that the government will address this outstanding financial obligation.
He stated that the concerns of most hospitals regarding the transition and debts were legitimate and would be addressed in due course. “We will take on the assets and liabilities of NHIF.
Our estimated outstanding debt is approximately Sh30 billion,” he said. The Health Ministry, he said, has formed a transition committee that has been taking stock of NHIF’s assets and liabilities.
“We have also formed a committee that will oversee claims payment and disbursement of funds.
We will not favour any hospital as far as payment is concerned,” he said. “Whatever amount we have at the ministry, we will just use a percentage and declare that out of the amount that we have, we will pay hospitals a flat rate so that we clear the debts to assure them that there will be no debts carried forward with the transition,” Mr Kimtai added.
The Principal Secretary said that moving forward with the transition, payment of claims would not be delayed since the current system can monitor claims as they come in, with the system as of Tuesday last week capturing Sh100 million to be paid to hospitals.
“We have given a directive to SHA (Social Health Authority) that they need to pay the claims within 90 days of being lodged. This will bring confidence and satisfaction to everyone.
We want sanity to ensure that those who are investing in the business are sure of their returns so that they can grow,” he said.
The Principal Secretary defended the Social Health Insurance Fund (SHIF) that has caused radical changes in the health sector, saying the inadequacy being experienced is due to teething problems.
He emphasized that the new Social Health Insurance Fund (SHIF), despite its shaky rollout, is set to transform healthcare access.