The caretaker government of Khyber-Pakhtunkhwa has issued directives to halt the Board of Governors (BoGs) of all Medical Teaching Institute (MTI) Hospitals from making significant decisions, including new appointments.
A letter from the advisor to the chief minister emphasized that BoGs must seek prior approval from the Health Department for major decisions.
This move echoes a previous directive issued on May 24 last year, which imposed a ban on all new recruitments by the BoGs of MTI hospitals.
The backdrop to these decisions is the suspension of claims payment to public sector hospitals under the Sehat Card program by the State Life Insurance Company.
This suspension has had a profound impact on the revenue of public hospitals, including MTI hospitals in Khyber-Pakhtunkhwa. As a result, these hospitals have been facing financial constraints, struggling to procure essential medicines and provide free treatment to patients, particularly those covered under the Sehat Card program.
The insurance company’s stance underscores the gravity of the situation, as they insisted on the release of funds by the provincial government to settle outstanding dues, which, back then, amounted to approximately Rs30 billion. The company had specifically requested Rs10 billion from the provincial government to clear these dues. Failure to address this issue could lead to dire consequences, including the inability to pay healthcare providers and difficulties in securing vital supplies.
These financial challenges have had a cascading effect on consultants and healthcare providers, impacting their ability to deliver essential care to patients. For instance, Hayatabad Medical Complex (HMC) was awaiting Rs900 million in claims, but payments had been halted by the insurance company. This financial strain had significantly hampered the capacity of healthcare facilities in Khyber-Pakhtunkhwa to ensure the provision of quality healthcare services to the public, posing serious challenges to the healthcare system.
Published in The Express Tribune, February 22nd, 2024.
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