National Hospital Insurance Fund (NHIF) suffered a blow after the government declined its new claims management system upgrade.
A report by Daily Nation on Sunday, March 7, indicated that the tender to upgrade the system was already underway when the government, through the Public Procurement Administrative Review Board (PPARB), put a break on it.
The tender, which was valued at Ksh524 million, had been awarded to three companies. The tender involved the supply, delivery, Installation and commissioning of the Enterprise Resource Planning (ERP) and claims management system.
Public Procurement Administrative Review Board (PPARB), however, cancelled the tender on the grounds that it was irregularly awarded to the three companies through a process that contravened procurement laws.
“In exercise of the powers conferred upon it by Section 173 of the Act, the board makes the following orders in the request for review.
“The accounting officer of the procuring entity’s letter of notification of intention to enter in a contract for Lot I of Tender No. NHIF/015/2020-2021 for supply, delivery, installation, testing and commission of an ERP and Claims Management System dated January 26, 2021, addressed to the third respondent and all unsuccessful bidders, be and are hereby cancelled and set aside," read the statement by PPARB.
The tenders were divided into three lots. A company that won in Lot 1 was awarded Ksh135 million, that of Lot 2 was awarded Ksh283 million while lot 3 got Ksh106 million.
The tender had been first in October 2020 but was later extended to December the same year.
In 2018, NHIF switched its claims management system from manual to electronic in an attempt to minimise fraud and enhance its efficiency.
Accredited hospitals were interfaced with the system where they were able to make claims and receive payments.
