KNH on the spot over millions in unpaid medical bills

Kenyatta National Hospital casualty wing. The hospital is yet to seal loopholes that saw it lose Sh47.5 million in unpaid medical bills in the 2015-2016 financial year. PHOTO | FILE | NATION MEDIA GROUP

What you need to know:

  • The auditor’s report notes that the KNH accrued debts amounting to Sh560.6 million.
  • According to the hospital’s head of communications, Mr Simon Ithae, it is difficult to recover the money after patients have left the hospital.
  • The auditor’s report shows that the hospital could not account for Sh224 million of the Sh1.1 billion it received from the NHIF in the 2015/2016 financial year.

Kenyatta National Hospital has not sealed loopholes that saw it lose Sh47.5 million in unpaid medical bills in the 2015-2016 financial year.

The Auditor-General’s report shows the hospital has over the years lost more than Sh500 million, as patients sneak out without paying their bills.

The auditor’s report notes that the KNH accrued debts amounting to Sh560.6 million by the end of June 2016, yet the management has not explained how it intends to recover the money.

“No explanation has been provided by the management for failure to recover these long outstanding debts,” says Auditor-General Edward Ouko.

According to the hospital’s head of communications, Mr Simon Ithae, it is difficult to recover the money after patients have left the hospital.

UNEMPLOYED

“Some 78 per cent of the patients treated at KNH are either from the informal sector or unemployed. Upon clinical discharge, most of them are unable to settle medical bills, and are released from the hospital on a commitment to pay their bills in future on unsecured credit,” he said.

At the same time, Mr Ithae said KNH spends nearly Sh24 million every month on abandoned patients, including infants.

He noted that at any given time the hospital accommodates more than 100 abandoned patients.

Some of these patients, he added, were usually on treatment while others would have recovered but have been abandoned by their relatives.

DISCHARGED

“On average, KNH spends about Sh5,000 a day to sustain a discharged patient in the ward, while the cost could rise to an average of Sh8,000 for the abandoned and receiving medical treatment,” said Mr Ithae.

He noted that the reimbursements from the National Hospital Insurance Fund (NHIF) were not enough to cover the costs incurred by the hospital when offering specialised care.

The auditor’s report shows that the hospital could not account for Sh224 million of the Sh1.1 billion it received from the NHIF in the 2015/2016 financial year.

MEDICAL SERVICES

However, the report notes that NHIF owes Kenyatta Sh311 million, which it failed to remit after the hospital provided medical services to its members.

The hospital, in its financial statement,  had stated a debt of Sh67.3 million due from NHIF. This leaves a balance of about Sh243 million, and it is not clear whether the amount was paid as the management has been unable to explain the disparity.

The report also says that the KNH failed to get value for money as it had paid about Sh96 million to some foreign-based firms, which had failed to supply goods as contracted.

The auditor adds that the hospital paid three firms Sh128 million under questionable circumstances.