Kenya gears up for major health sector reforms

He added, “We are delighted to have completed this investment in NWH and look forward to helping them reach a larger portion of the underserved population in East Africa.”

Health financing experts say Kenya may lose out in the initial phase of implementation of the cheap healthcare financing model if it does not fix its regulatory landscape in time.

The Kenya Private Health Sector Assessment Report published by USAID in September last year recommends the formation of a PPP unit within the health ministry to create an enabling environment for private sector’s investment in health services.

The report calls for the review of the national health policy framework and the harmonisation of key health laws in order to integrate PPP partnerships in improving availability and accessibility of healthcare.

Health burden

Healthcare financiers also recommend the integration of the private sector into the National Health Insurance Fund pilot financing of out-patient services and the introduction of low-cost insurance products in the country.

Available statistics indicate that the private sector is already the leading contributor of the $16 billion spent on health in Africa every year.

According to the Business of Health In Africa Report published in 2007, at least 50 per cent of the total health burden is settled as an out of the pocket expenditure by the private sector compared to 40 per cent public funding of state and five per cent paid by companies on behalf of employees.

Experts say efforts at making healthcare available and affordable to majority of the population in the low income bracket will only be sustainable if it stretches beyond prudent management to address personnel shortage within the sector and high fees demanded by doctors.

“The cost of medical services in the country is way off the mark but can be reduced significantly if doctors are prevailed upon to lower their fees which currently constitute the biggest component of the cost for specialised treatment,” argues the NHIF CEO, Steve Kerich,

According to the World Health Organisation, the shortage of human resources for health has replaced financial issues as the most serious obstacle to implementing national treatment plans in developing nations.