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The country’s health sector sunk to a new low yesterday after private hospitals started turning away patients holding National Health Insurance Fund (NHIF) cards due to the insurer’s failure to remit funds.

Scores of private hospitals affiliated to various organisations such as the Kenya Association of Private Hospitals (KAPH), the Rural Private Hospitals Association of Kenya (Rupha) and the Kenya Healthcare Federation (KHF) were yesterday demanding that all patients, including NHIF card holders, pay their bills in cash.

The move followed Rupha’s notice to patients visiting hospitals affiliated to it that starting Monday, they would be required to pay in cash for both outpatient and inpatient services as well as specialized services such as dialysis, eye care, cancer care or rehabilitation services.

The notice also indicated that patients on Linda Mama scheme “will be requested to pay in cash for the cost of hospitalization and any procedures or where available to use alternative insurance.”

“We regret to inform you that due to persistent challenges in receiving payments from the NHIF, on 4 March 2024, Rupha issued a 14-day notice to the NHIF to remedy the breach. However, no remedy has been forthcoming. Given the foregoing, RUPHA, on behalf of its members, is now compelled to take certain measures to ensure the continued provision of essential healthcare services,” stated the notice dated March 18.

The latest development came despite assurances by Health Cabinet Secretary Susan Nakhumicha assuring MPs on Monday that the government had paid both public and private hospitals Sh13.3billion between October and December last year as NHIF refunds.

A document tabled before the National Assembly’ health committee showed of the Sh13.3 billion, Sh2.39 billion was paid to government hospitals, Sh2.2 billion to faith based institutions while private hospitals were paid Sh8.7 billion.

Nakhumicha told the MPs that the reimbursement is based on the availability of funds received from statutory deductions from the informal sector, government remittances for sponsored programs and enhanced schemes premiums.

The move by the hospitals to turn away NHIF card holders worsened the crisis in the health sector after doctors went on strike last week protesting poor terms of service amongst a raft of other demands.

A meeting called to resolve the doctors’ strike ended in a stalemate on Monday after the union rejected a return to work formula put on the table by the Health Ministry.

On the same day, governors also warned of a looming paralysis in the healthcare sector following the