Nairobi Hospital halts price hikes after talks with insurers

The Nairobi Hospital on Monday announced it had suspended the implementation of its recently announced price adjustments following a meeting with medical insurance providers.

The embattled hospital’s Chief Executive Officer, Felix Osano, in a statement, said the decision was “made in good faith” after insurers requested more time for dialogue on the contentious move, which saw eight companies suspend coverage of its services.

The 70-year-old private hospital’s management last month increased the cost of services by as much as 61 per cent on key services such as scans, ultrasounds, and bed charges. 

It cited increased operational costs, including the rising pharmaceutical and medical supplies prices, and held that the adjustments “are necessary to maintain the high standards of healthcare” for its patients.

This saw Madison Insurance, ⁠First Assurance, ⁠Minet, ⁠Old Mutual, ⁠Britam, ⁠AAR, ⁠CIC, and ⁠Pacis Insurance suspend coverage of Nairobi Hospital’s services effective this week.

Most of the insurance companies said their efforts to negotiate a fairer pricing model with the hospital’s management bore no fruit.

Monday’s meeting comprised representatives from the eight insurers, as well as Heritage, Kenindia, Kenya Alliance, and Fidelity.

Mr Osano said discussions on the proposed tariffs were “open and constructive,” adding that the hospital “remains dedicated to fostering strong partnerships with all stakeholders while upholding its mission to deliver accessible, high-quality healthcare to the community.”

The Kenya Hospital Association (KHA)-owned facility, which is among the region's most prestigious, has been battling leadership wrangles, financial mismanagement allegations, and a reported debt of over Ksh.3 billion.

One of the KHA’s creditors has moved to court seeking the hospital's liquidation in a case set for a hearing this Wednesday.