K-P hospitals receive vital cash injection

Approval of Rs1.85 billion enables 15 MTI hospitals to procure life-saving medicines

PESHAWAR:

The Khyber-Pakhtunkhwa (K-P) government has disbursed over Rs1.85 billion to 15 medical teaching institutes (MTI) hospitals across the province, addressing the critical need for life-saving medicines. This financial injection comes in response to prior reports highlighting the hospitals’ insufficient funds, causing difficulties for patients.

A notification, accessed by The Express Tribune, reveals specific allocations, including Rs370.80 million for Ayub Medical Complex, Rs50.41 million for Khalifa Gul Nawaz Hospital Bannu, Rs70.32 million for Mufti Mehmood Teaching Hospital DI Khan, and Rs290.58 million for Hayatabad Medical Complex, Peshawar.

In October, the K-P Caretaker Chief Minister, late Muhammad Azam Khan, proactively addressed the financial crisis affecting MTIs. He instructed his health advisor and chief secretary to urgently secure the necessary funding for these hospitals, emphasizing that emergency services must remain unaffected. The chief minister stressed the need for prompt arrangements to ensure uninterrupted emergency care.

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

He reiterated the caretaker government’s commitment to prioritizing uninterrupted healthcare services, despite financial constraints. The health sector received top priority in the allocation of available financial resources, with a focus on developing a sustainable plan for the long-term financial stability of MTIs. The chief minister underscored the sector’s continued high priority and emphasized the need for a viable, long-term plan to ensure financial stability for 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.

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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.

Published in The Express Tribune, December 2^nd, 2023.