FLashback: Mr James Ohemeng Kyei (left), President of the PSGH and Mr Dennis Sena Awitty, Executive Secretary at the Central Medical Stores in Tema after being razed down by an inferno

PSGH cries foul over non-payment of claims

The Pharmaceutical Society of Ghana (PSGH) has said the decision of the National Health Insurance Authority (NHIA) to concentrate its resources on infrastructural development to the detriment of settling its debts to service providers is gradually killing some local businesses.

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According to the President of the PSGH, Mr James Ohemeng Kyei, the NHIA had not reimbursed service providers for almost a year and was indebted to them to the tune of GH¢456.4 million.

 Mr Kyei said the situation was not only collapsing the businesses of service providers, but was also making their bankers to confiscate their assets which they used as collaterals to secure loans.  

Infrastructural development

Mr Kyei, therefore, called for the immediate halt to all infrastructural development being undertaken by the NHIA, stressing that it undermined the sustenance of the health insurance scheme.

In an interview with the Daily Graphic, Mr Kyei said instead of prioritising its operations to make the health insurance scheme more dignified, effective and efficient, the NHIA had focused on developing infrastructure to the detriment of the health insurance scheme.

“Developing massive infrastructure and buying numerous vehicles have no direct impact on quality health care delivery in the country, but that is what the NHIA has focused on,” he bemoaned.

Misplaced priorities

Mr Kyei said the failure of the NHIA to prioritise its operations also influenced the authority to spend as much as GH¢144.57 million on biometric registration, adding that: “Their action is a case of misplaced priorities, lack of respect to service providers and a flagrant show of power.”

He said already, the PSGH had written to the NHIA to suspend its infrastructural development until all arrears had been cleared, adding that the suggestion had been ignored.

“In 2010, the NHIA commenced building regional offices and completed them in 2012. Putting up all regional NHIS offices within two years clearly affected the finances of the scheme and this necessitated the borrowing of GH¢140 million from the bank to support claims payment. The NHIA will finish paying the loan and interest of GH£35.7 million this year, so one wonders why they also embarked on the biometric registration exercise.”

Main challenge

“Our main challenge is the non-payment of claims to pharmaceutical service providers by the NHIA. This has affected the pharmaceutical sector negatively and pharmaceutical service providers are also indebted to pharmaceutical manufacturers, importers and distributors.”

“Since 2007, the NHIA has funded a number of building projects and undertaken many non-core and non-urgent activities. Now is the time for the NHIA to stop funding more of these activities and projects, and rather focus more on claims payment to service providers,” Mr Kyei said. 

He said besides pharmaceutical service providers, the Ghana Health Service, teaching hospitals, university hospitals, as well as private hospitals, maternity homes and laboratories were going through severe difficulties as a result of the NHIA indebtedness.

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