A recent survey by the Rural and Urban Private Hospitals Association of Kenya (RUPHA) has revealed that as of December 24, 2024, a staggering 80% of contracted private healthcare facilities under the Social Health Authority (SHA) had not received any payments.
The study disclosed that only 20% of these facilities reported receiving payments, highlighting ongoing challenges in the disbursement of funds and raising concerns about the financial stability of healthcare providers across the country.
The survey, which examined payment trends from October to December 2024, painted a concerning picture of the payment process.
While there was a slight improvement in payment rates during the period, with 23% of facilities receiving payments in November, the situation reverted again in December.
By Christmas Eve, 80% of private facilities were still awaiting payment, leaving many struggling to manage operational costs.
“In October 2024, only 19% of facilities received payments, leaving 81% unpaid. The situation improved slightly in November, with 23% paid and 77% unpaid, but regressed in December, with just 20% receiving payments and 80% unpaid by 24th of December 2024,” read the report in part.
The report further revealed that the majority of facilities that received payments faced irregular cash flow.
Specifically, 58% of those paid received only a single payment from SHA, while 36% received two payments.
Only a small fraction, 6%, received three payments, suggesting that regular reimbursement remains a rare occurrence.
Likewise, the survey highlighted disparities in payment distribution between different healthcare sectors.
Primary healthcare facilities at Levels 2 and 3 were hit hardest, with just 35% receiving payments.
Of these, Faith-Based Organizations (FBO) fared better than Ministry of Health facilities, with 42% of FBO primary care providers receiving at least one payment compared to none for MOH facilities.
Among private primary healthcare providers, 35% received payments, reflecting the continued financial strain at this level of care.
In contrast, tertiary healthcare facilities (Levels 4-6) reported relatively better outcomes, with 55% of facilities receiving payments.
However, 45% of these facilities, which are crucial for higher-level medical services, still did not receive payment, demonstrating that challenges in payment distribution are widespread across different tiers of healthcare.
The new healthcare model unveiled by President William Ruto last year continues to face criticism, with many Kenyans blaming it for inefficiencies.
The new health model categorizes Kenyans into two bands, salaried and non-salaried, with different payment packages for both.
