Nairobi Hospital, insurers set for talks amid cost concerns

Nairobi Hospital entrance as seen in this image. [File, Standard] The Nairobi Hospital is set to hold consultative meetings with medical insurance firms on Monday, August 11, to address concerns over recent tariff adjustments. The hospital said the meeting will bring together all affected insurers to seek solutions that balance patient needs with the provision of quality healthcare. "The Nairobi Hospital remains committed to constructive engagement with our stakeholders. We recognise the concerns raised by our insurance partners, but reiterate that the tariff adjustments are necessary to maintain the high standards of healthcare our patients deserve," the Hospital Chief Executive Felix Osano said in a statement on Saturday. The talks follow the temporary suspension of services at the hospital by eight major insurers, including AAR, Madison, Old Mutual, Britam, CIC, Minet, First Assurance, and Pacis, over what they termed exorbitant treatment costs. The high-end hospital has faced criticism after raising prices by up to 61 percent for key services, including bed charges and ultrasound scans. CEO Osano defended the increases, saying the rates are in line with comparable facilities. "Independent comparisons indicate that our revised rates remain competitive and fair when measured against peer institutions offering equivalent levels of care and expertise," said Osano. "We are confident that, through dialogue and goodwill, an amicable resolution will be achieved in the best interest of our patients, insurers, and the healthcare ecosystem at large." Last week, AAR told its clients it would suspend services at the hospital starting Monday after failing to reach an agreement. "While we remain committed to investing in excellent healthcare, the scale of recent cost increases raises concerns about long-term affordability for our members. Despite a sincere effort from both parties, we were unable to reach mutually acceptable terms at this," its CEO and Principal Officer Justine Kosgei said in a notice dated August 6. CIC Group also announced it would suspend services starting Tuesday, August 12. "We have been engaging The Nairobi Hospital on the cost of care at their facility. As you may be aware, and may have picked from the reports (specifically the average cost report) that we share with you, the provider has significantly revised their prices. We consider their rates not only unsustainable, but those that cannot be remedied, not even with a premium revision," the insurer said. The price dispute comes amid a leadership wrangle at the hospital, with rival factions vying for control of the Board and management.

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