Henry Rotich failed to give health sector a much needed shot in the arm
A recuperating patient. The healthcare industry received just 4.2 per cent of Kenya national budget. Photo/FILE
This year’s Budget has few winners among players in the healthcare industry, which received just 4.2 per cent of the national budget.
However, given that healthcare has been devolved, little was to be expected apart from policy issues. Patients received little aid towards reduction of their medical bills or improved access to quality healthcare.
A postmortem of last year’s budgetary allocation highlights a perennial problem that budgeting experts have pointed out: our inability to fully utilise allocated funds. The Health ministry returns funds to the government even as public hospitals lack drugs and medics, and patients share beds.
A shift in funding policy is needed to address this shortcoming. For example, some of the money could be channelled to the private sector where absorption is more efficient. Also, a “health kitty” disbursed under any of the government’s funds would ensure no funds are under-utilised.
Presently, health entrepreneurs fighting for state funds have to contend with youth and women enterprise fund applicants who are oblivious of the critical agenda we seek to address.
Treasury secretary Henry Rotich’s proposals should have aimed at ensuring the easier and speedier implementation of the Public Private Partnership Act 2013 to ease access of funds in underserved areas.
Given the huge capital required for health investments, the Sh300 million given to the slum healthcare programme is too little for the many small “rural and urban poor” facilities. Instead, we must take the view that the private health sector complements, not competes with, the public sector.
There is a new policy to lease medical equipment that must be closely examined. With Sh3 billion set aside, the devil in leasing is in the details.
The allocation of Sh13.6 billion to only two national referral hospitals needs a rethink. A review of the referral data and results may point to better funds utilisation if the money is instead used to upgrade regional hospitals.
More smaller referral units should be the way to go. The cancelled tender for upgrading of county hospitals should therefore be given priority this financial year.
For pharmaceutical manufacturers, the 40 per cent quota proposed without attempts to help lower their production costs was an illusory gift. Without competition, prices will remain high.
Vulnerable
For the insurance industry, the only thing they may get is the Sh2 billion or so at stake in the police, and the vulnerable medical schemes.
The staffing gaps were also partially addressed with the recognition of medical internship as a component of our labour force. Medical doctors, clinical officers and nurses on internship account for up to 60 per cent of the workforce in some hospitals.
Allocation of more funds to the Kenya Medical Training College will increase the number of trained workers, especially in marginalised counties. More funds should have been allocated to ensure more junior doctors are trained to fill speciality gaps in our county hospitals. This will also reduce referrals.
Economic planners should also consider stimulating growth in the private healthcare sector. Otherwise, more students will be trained but have no viable workplaces to practice.
