Private hospitals could face revocation of their licenses if they fail to comply with the Social Health Authority (SHA) regulations on outpatient services.
Health Principal Secretary (PS) Harry Kimtai made the declaration on Monday, March 17, sounding a warning to private hospitals which turned away patients seeking outpatient services.
Speaking during the launch and presentation of digitization devices in Embu County, Kimtai expressed concern over the reluctance of private healthcare providers to offer outpatient services under the new healthcare model.
"From the statistics and data we have seen, we have realized that most of the private facilities are not participating in outpatient services, which is primary healthcare funding," Kimtai said, adding that non-compliant health facilities could face serious consequences, including denial of registration and a possible shutdown.
According to the PS, the health ministry had provided private hospitals with sufficient data in a bid to understand the reluctance of private hospitals and establish whether the issue stemmed from a lack of comprehension of the new model.
Kimtai added, "Private hospitals in Kenya are mandated to deliver outpatient services in accordance with the Social Health Authority (SHA) regulations, which outline specific guidelines for service provision. We have shown them the statistics and we will get to know why they are not participating. Is it because they don't understand the model?"
The PS speculates that private hospitals are reluctant to comply because patients generally prefer public healthcare facilities under Taifa Care.
He, however, reaffirmed that the Social Health Authority was based on evidence and quarterly financial data, which support its sustainability.
"If they (private hospitals) continue like this... if they are not compliant and don’t want to provide services to Kenyans, then they will have to close shop because they are also subject to licence renewal," he warned.
The government and private hospitals have been embroiled in a longstanding impasse over the new medical scheme, with the Rural and Urban Private Hospitals Association (RUPHA) announcing the suspension of services under SHA in February. The suspension has since been lifted following intervention from President William Ruto.
One of the key concerns of private hospitals is unpaid debts, which date back to 2017. According to RUPHA Chairperson Brian Lishenga, the deficit in funds has led to bank defaults and stockouts of essential medicines, among other challenges.
Under Kenya's Social Health Authority (SHA) framework, outpatient services are capped at KSh2,000 per visit, with beneficiaries of the scheme limited to four visits annually in Level 2, 3, and 4 primary healthcare referral facilities. This model is seen as unsustainable by private facilities.