Hospital Denies Links to SHA Chair Amid Claims of Ksh66 Million Payout

Ladnan Hospital in Pangani, Nairobi, has moved to distance itself from recent online claims linking it to Abdi Mohammed, the chairperson of the Social Health Authority (SHA), after reports surfaced suggesting the hospital received Ksh66 million in payments from SHA.

In a public statement, the hospital confirmed that while Abdi Mohammed was once a shareholder, he sold all his shares in 2023 well before the SHA was established.

“The Metro Group PLC (TMG) wishes to clarify recent reports regarding the ownership of Ladnan Hospital,” the hospital said in a statement. “Ladnan Hospital Limited in Pangani is a wholly owned subsidiary of Metropolitan Hospital Holdings Limited, which is fully owned by TMG. TMG is a public unlisted company with over 500 shareholders.

The statement reaffirmed that Mohammed has not been involved in the ownership, operation, and management of the hospital since July 2023.

A Facebook announcement by Mohammed on his personal account, dated July 5, 2023, affirms his exit. “This marks the end of an era for me at Ladnan Hospital, which I co-founded almost 13 years ago,” he wrote. “I have also exited from Ladnan Hospital Wajir, which has a separate shareholding.”

Questions about the hospital’s ownership came after SHA released a list of claims it had paid out.

According to that list, Ladnan Hospital received Ksh52 million an amount larger than what was paid to major referral facilities like Moi Teaching and Referral Hospital (MTRH) and Kenyatta University Teaching, Referral and Research Hospital (KUTRRH).

The large payment raised eyebrows online, with several reports linking the hospital to the SHA chairperson and hinting at possible fraud.

However, Ladnan was not the only hospital flagged. Other facilities were also listed as having received payments that appeared inconsistent.

On Monday, August 26, Defence Cabinet Secretary Aden Duale weighed in on the matter, insisting that medical insurance fraud is a pressing concern.

He cited statistics provided by the Association of Kenya Insurers (AKI), which estimates the percentage of fraudulent medical claims at a maximum of 30 percent.

Duale indicated that since he took office on April 1, the Ministry has ramped up efforts against healthcare fraud. He said several institutions have already been shut down as part of this crackdown.

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