NAIROBI, Kenya — A recent survey by the Rural & Urban Private Hospitals Association of Kenya (RUPHA) reveals a troubling financial crisis facing healthcare facilities contracted by the Social Health Authority (SHA).
According to the findings, nearly 90% of hospitals report financial distress, attributing their struggles to chronic delays in reimbursements from the SHA.
The survey, conducted between October and December 2024, highlights that 96% of the 243 surveyed facilities are grappling with financial difficulties.
Private facilities are the most affected, with 98% in distress, followed closely by faith-based organizations (FBOs) at 90%.
Key factors contributing to this crisis include escalating operational costs (89%), payroll expenses (87%), and overdue supplier payments (81%).
https://x.com/RuphaKenya/status/1876370056718016844
Many facilities have resorted to taking loans to stay afloat, a measure described in the report as a “stopgap” that worsens long-term financial instability.
“The reliance on loans is a stopgap measure at best,” the report states. “It exacerbates long-term financial instability for these facilities.”
Despite assurances from the government about the resolution of payment issues, the survey paints a stark picture of delayed reimbursements.
Only 42% of the facilities received any payments for their SHA claims during the surveyed period, and of those, 52% received less than 20% of their submitted claims.
Payments were sporadic, with most facilities reporting just one payment in the entire quarter.
SHA has refuted the report’s claims, asserting that over 90% of the hospitals have been paid since October.
Acting SHA CEO Robert Ingasira stated, “SHA has so far paid Sh7.3 billion to 5,000 healthcare facilities. More than 90% of both private and public facilities have been paid.”
Primary care facilities, particularly those at levels 2 and 3, are the hardest hit, with only 21% reporting any reimbursements.
In contrast, tertiary facilities at levels 5 and 6 were more likely to receive payments.
RUPHA Chairperson Dr. Brian Lishenga emphasized the structural challenges within the healthcare system and the urgent need for measures to ensure the financial sustainability of primary care services.
Medical Services Principal Secretary Harry Kimtai recently assured the public that the government had addressed the challenges of transitioning from the National Health Insurance Fund (NHIF) to SHA, citing improved training for hospital personnel.
However, the survey indicates that disparities in payment between primary and tertiary facilities persist.
