K-P teaching hospitals face financial crunch

Problem stems from insurer’s refusal to settle hospitalization claims; CM orders emergency funding

PESHAWAR:

Khyber-Pakhtunkhwa’s (K-P) Caretaker Chief Minister, Muhammad Azam Khan, has taken notice of the financial crisis affecting Medical Teaching Institutions (MTIs) in the province. He has directed his health advisor and chief secretary to urgently secure the necessary funding for these hospitals. The chief minister emphasized that emergency services at MTIs must remain unaffected, and the required funds should be promptly arranged to ensure uninterrupted emergency care in these facilities.

During a meeting with his health advisor, Dr. Riaz Anwar, and Chief Secretary Nadeem Aslam Chaudhry, the chief minister discussed the financial challenges faced by MTIs.

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He reaffirmed that the caretaker government’s top priority is to ensure uninterrupted healthcare services for the public, even in the face of financial constraints. The health sector will receive high priority in the allocation of available financial resources, and a sustainable plan for the long-term financial stability of MTIs will be developed.

He emphasized that the health sector would be accorded the highest priority in the allocation of available financial resources. Moreover, he called for the development of a viable and sustainable plan to ensure the long-term financial stability of MTIs.

Background

The State Life Insurance Company had suspended claims payment to public sector hospitals under the Sehat Card program. This suspension significantly reduced the revenue of public hospitals, including medical teaching institute (MTI) hospitals across K-P. Due to financial constraints, these hospitals were struggling to procure medicines and provide free treatment to patients. Providing treatment to Sehat Card patients became increasingly challenging.

The insurance company’s stance was that they will only pay claims if the Khyber-Pakhtunkhwa government releases funds to cover the outstanding dues, which had reached approximately Rs30 billion. The insurance company had requested at least Rs10 billion in funds from the provincial government to clear outstanding claims. Failure to do so could have serious consequences, including the inability to pay healthcare providers and difficulty in procuring essential supplies. In light of these financial challenges, consultants and healthcare providers were facing difficulties, impacting their ability to provide necessary care to patients.

Hayatabad Medical Complex (HMC) was also awaiting Rs900 million in claims, but the insurance company had halted payment for these outstanding claims. The financial strain on healthcare facilities in K-P had created significant challenges in ensuring quality healthcare services for the public.

Consultants and healthcare providers face mounting challenges that impact their ability to deliver necessary care to patients. This dilemma also extends to the Hayatabad Medical Complex (HMC), which is awaiting approximately Rs900 million in unpaid claims, while the insurance company has halted further payment for these outstanding claims.

Consequently, healthcare facilities in K-P are grappling with significant financial constraints that undermine their capacity to ensure the provision of quality healthcare services to the public.

The chief minister’s intervention signifies a crucial step in resolving these pressing issues and securing the future of MTIs in the province.

Published in The Express Tribune, October 14^th, 2023.