Nairobi Hospital has suspended its services for Jubilee Insurance card holders, citing unpaid debts of up to KSh357 million that have accrued over a period of three years (since 2018).
According to Nairobi Hospital CEO, Allan Pamba, the bills originate from the 2018 and 2019 packages, including KSh33 million and KSh47.8 million, respectively. Furthermore, the insurer owes the hospital KSh96 million since the beginning of 2020.
Meanwhile, Jubilee Insurance has issued a statement with regards to the issue. The statement outlines that the dispute is as a result of Nairobi Hospital’s failure to provide justification for some bills adding up to KSh80 million, compared to an approximate business of KSh1 billion per year.
In May, Jubilee Insurance announced a 2.6% drop in net profit to KSh4 billion for its 2019 financial year report. Net claims rose to KSh19.7 billion from KSh15.9 billion in the previous year. Gross premium earned climbed to KSh29.1 billion in 2019 from KSh26.6 billion in 2018. It also witnessed an increase in claims from KSh15.9 billion to KSh19.7 billion. Total Income increased to KSh32.8 billion from KSh27.9 billion.
However, this is not the first time a hospital is having disputes with an insurer. In February this year, a consortium of insurers suspended credit services at Nairobi Women’s Hospital, citing cost inflation by the hospital administration and unnecessary tests. The insurers included UAP, AAR, and CIC.