Operating licences for eight private health facilities may be withdrawn if found culpable for the latest scandal to hit the National Health Insurance Fund (NHIF), Health Cabinet Secretary Susan Nakhumicha has warned.

The CS also suspended eight NHIF branch managers working in the affected health facilities as the Ministry of Health in conjunction with the Ethics and Anti-Corruption Commission (EACC) swung into action yesterday to bring the culprits to book.

The NHIF officials are accused of using underhand tactics to fleece Kenyans and the government of an estimated Sh1.6 billion.

Nakhumicha’s move follows a public outcry after an expose detailing how dishonest private health facilities stole millions of shillings from unsuspecting ageing patients in Meru, Embu, Kiambu and Nairobi counties.

“I have had a meeting with the NHIF board chair this morning and instructed him to commence investigations immediately – including inviting the whistleblower to share details regarding this heartless and ruthless cartel,” Nakhumicha said at Afya House yesterday.

She further asked the Board to act against the affected private hospitals. She accused cartels of colluding with branch managers to scheme the cheating and theft from sick people and government resources.

Nakhumicha who made several directives including to the EACC; the Kenya Medical Practitioners and Dentists Council (KMPDC) and Pharmacy and Poisons Board (PPB) instructed the NHIF board to commence investigations into the alleged fraud and present her with a preliminary report by tomorrow (Wednesday).

“I have directed that a preliminary report be shared with me within 48 hours by the NHIF Board,” she said.

The CS was flanked by NHIF Board chair, Eng Michael Kamau and Mary Muthoni, Principal Secretary, Public Health and Professional Standards among other senior Ministry officials.

To ensure that facilities suspected to be engaging in malpractice do not continue with their activities, Nakhumicha further instructed the KMPDC and PPB to commence investigations immediately and conclude within 48 hours on the families mentioned in the Sunday local television expose.

Transfer patients 

This move will automatically affect services in the affected facilities as they were expected to embark on transferring their patients, to facilitate an inspection process, which may lead to closure.

“And within 24 hours starting now, the facilities are directed to immediately transfer their inpatients and evacuate their process.

“This will allow KMPDC to commence their inspections, thereafter our teams will enforce the directive for closure should they inspect and find them culpable, and they will remain closed until investigations are concluded,” the CS said even as rural private hospitals distanced themselves from the eight facilities in question.

“None of the eight hospitals implicated in the expose are members of Rural Private Hospitals Association of Kenya (RUPHA),” the Association’s national chairman, Dr Brian Lishenga said in a statement last evening.

The CS further directed the division of standards and regulations to take action on the same and give a report.

“I have further made a special request to EACC to liaise with NHIF and carry out comprehensive investigations to find out how these cartels siphon resources from Kenyans and NHIF specifically and I hope this can be availed within the next seven days,” she said.

The facilities implicated in this latest scandal include; St. Peter’s Orthopaedic and Surgical Specialty Hospital, Afya Bora Hospital in Nairobi, Afya Bora Hospital Annex, Amal Hospital Limited, Beirut Pharmacy and Medical Centre, Jekim Hospital Nkubu Limited, Jekim Medical Centre; and Joy Nursing and Maternity in Eastleigh, Nairobi.

Outstanding payments

She also revealed that the Ministry has embarked on a nationwide verification exercise of all payments to flag any inconsistencies that may have been used to abuse resources.

“This is beyond verifying the current outstanding payments,” she stated, adding that an elaborate lifestyle audit of all staff of NHIF will commence immediately to ascertain whether the wealth in their possession corresponds with their monthly income.

This, she said, will ensure that each member of staff can explain whether their wealth portfolio is in consistency with their earnings.

She announced this will commence this month in conjunction with the EACC but will be a continuous exercise throughout the year. “Any inconsistencies flagged out will be subjected to investigations and will attract firm legal measures,” she stated and cautioned no organisation will be allowed to conduct a medical camp if not licensed by the KMPDC.

“Any organisation or individual that/who wishes to run a medical camp, must get a license through KMPDC, and I also emphasise that chiefs do not license medical camps,” she said.

This emphasis, Nakhumicha said, serves to ensure there are no subsequent instances where some people will plead innocence.

On their part, health facilities under the RUPHA stated that the association maintains a rigorous vetting process for new members and enforces a strict Anti-Fraud Policy.

Lishenga however, warned that should any member of the Association be found guilty of fraudulent or unethical practices, RUPHA will immediately revoke their membership and publicly announce such a revocation to all members and industry partners.