Nairobi Hospital faces crisis over Ksh 2.2 billion debt that threatens operations

The situation at Nairobi Hospital has reached a critical point, prompting urgent discussions among the Kenya Hospital Association (KHA) members about the future of one of Kenya’s most prominent healthcare institutions.

Mithamo Muchiri, a KHA member expressed a mix of urgency and optimism, emphasizing the association’s commitment to addressing the hospital’s declining conditions.

For several months, Nairobi Hospital has struggled with severe operational challenges, compounded by substantial debts totaling approximately 2.2 billion shillings owed to suppliers.

Dr. J.D Partel detailed ongoing issues related to supply chain management, warning that unvetted supplies could lead to significant repercussions, including litigation. “The letters sent to suppliers aimed to clarify that any unvetted supplies could disrupt our operations and lead to legal complications,” he stated, highlighting the critical need for a reliable supply chain for both consumables and essential machinery.

In light of these financial challenges, Partel underscored the importance of proper vetting and maintenance programs to avoid escalating the hospital’s difficulties. The KHA is appealing to suppliers to hold off on new shipments until the current supply chain issues are resolved. “We are making strides to ensure that the supply chain is streamlined and managed effectively, but this requires cooperation from all parties involved,” he added.

The financial crisis is not the only issue facing the hospital. A looming governance crisis has also surfaced, particularly regarding the board’s decision to extend the CEO’s contract without a transparent recruitment process. Critics allege that the CEO was appointed through a non-transparent headhunting process led by Dr. Bichange, the current chairman. Concerns have also been raised about the CEO’s previous employment history, with suggestions of unverified qualifications.

Charles Kariuki Wambugu, another KHA member, voiced strong opposition to the contract extension for the CEO. “The current management has fostered a toxic work environment, leading to the resignation of several senior staff members. This atmosphere of intimidation has severely impacted staff morale and, by extension, patient care,” he said.

Wambugu, who served on an interim board in 2019, noted that prior governance changes had successfully stabilized the hospital but lamented the recent decline in operational integrity.

The hospital staff, many of whom feel trapped due to a lack of alternative employment opportunities, are reportedly struggling with low morale. “Staff members who are still at the hospital are enduring a difficult situation. When motivation is lacking, the quality of care suffers,” Wambugu explained.

Additionally Wambugu stressed that the hospital has fallen from its status as the healthcare provider of choice. Reports indicate that bed occupancy has dropped to 45 percent well below the 85 percent needed for financial sustainability, as patients increasingly seek care elsewhere.

He emphasized the need for KHA and Nairobi hospital doctors to advocate for better management practices to restore the hospital’s reputation as a leading healthcare provider in the region.

As the board prepares to meet to discuss crucial governance issues, including the future of the CEO, the KHA is pushing for a reevaluation of management practices and contract renewals.

Dr. Partel reiterated the association’s commitment to rescuing the hospital. “We believe in the potential of Nairobi Hospital and the vital services it provides to our community. It is imperative that we rectify the current governance challenges to return to being the hospital of choice,” he stated.

The ongoing turmoil at Nairobi Hospital has raised serious questions about the future of healthcare delivery in Kenya. As the KHA works to address these issues, the focus remains on restoring operational efficiency, improving staff morale, and ensuring that patient care does not suffer during this critical juncture.

The association’s members are united in their mission to navigate the hospital through this crisis, underscoring a shared commitment to uphold the standards of healthcare that Nairobi Hospital has historically represented.

“Our goal is to bring Nairobi Hospital back to its former glory,” he affirmed. The KHA is committed to ensuring that the hospital not only survives but thrives, prioritizing patient care and employee welfare.

As the hospital awaits a court decision regarding a special general meeting to discuss these pressing issues, the future of Nairobi Hospital hangs in the balance. The KHA’s proactive stance suggests that while challenges abound, there is a clear pathway towards recovery, should the necessary reforms be implemented swiftly and decisively.