Competition Authority Issues Cease and Desist Orders on Private Hospitals Turning Away NHIF Patients

NHIF Kenya
Images of President William Ruto and a hand holding an NHIF card.
Photo
PPU

The Competition Authority of Kenya has mandated the Rural Private Hospital Association of Kenya (RUPHA) to permit patients to access medical services using the National Health Insurance Fund (NHIF) card.

This directive comes in response to RUPHA's decision in December 2023, instructing its members to either reject or reduce the acceptance of NHIF cardholders due to unpaid remittances.

In a Gazette Notice, the Competition Authority issued a cease and desist order, directing RUPHA to immediately halt the implementation of this policy.

"RUPHA, its agents and members are directed to, with immediate effect, cease and desist from implementing the said circular and refrain from making further recommendations regarding prices, fees and terms of trade to any class of its members until the ongoing investigation is concluded and the Authority pronounces itself," the notice read in part.

nhif
NHIF building in Nairobi.
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NHIF

The directive is in line with Section 37 of the Competition Act which dictates that CAK may issue a cease and desist in any undertaking that could cause irreparable damage or hurt the public interest pending the conclusion of the investigations.

Associations affiliated with private hospitals including RUPHA and the Kenya Association of Private Hospitals (KAPH) had pulled out of NHIF owing to billions of shillings in debt.

According to RUPHA, NHIF owed members Ksh2.3 billion for general claims, Ksh2 billion for the Linda Mama program and Ksh1.8 billion for outpatient claims.

The association cited that the colossal debt paralysed operations across its members who were unable to provide efficient services.

RUPHA recently noted that NHIF only remitted Ksh56 million in the first three months of 2024, raising questions over the billions left unpaid.

Last month, Health CS Susan Nakhumicha promised that all outstanding debt for the Linda Mama program would be paid.

In December 2023, RUPHA effected the move, requiring NHIF cardholders to pay cash to access services. This included Ksh1,000 for outpatient services seeking treatment. 

The orders come amid the ongoing doctors' strike that has plunged the country into a health crisis, raising questions over the government's ability to provide universal health coverage. 

Health Cabinet Secretary Susan Nakhumicha during a Ministry event on March 5, 2024.
Health Cabinet Secretary Susan Nakhumicha during a Ministry event on March 5, 2024.
Photo
MOH