The Nairobi hospital has suspended Jubilee Insurance from the list of its insurance providers over a Ksh80 million dispute.
In a statement dated June 20, 2020, the underwriter says that the hospital has not been able to provide substantiating documents for the said claim, forcing them to withhold the pay.
“Jubilee Health Insurance Limited would like to notify our Esteemed Clients that we are currently experiencing service interruption at the Nairobi Hospital. This is as a result of a dispute arising from the failure by the hospital to provide justification for some bills adding up to about KES 80million, compared to an approximate business of KES 1 billion per year. We have been keen to resolve this impasse with the hospital who unfortunately have not been forthcoming with the information required to reach an amicable closure,” Jubilee Insurance said in a statement.
Jubilee Insurance has held that it will not release the funds to the Hospital unless the claim is justified.
“We further wish to state that transparency in billing is vital to ensure that all clients’ funds entrusted to us are aptly and prudently utilized,” added the statement.
In a letter from Nairobi Hospital CEO Allan Pamba to Jubilee Insurance dated June 17, 2020, it was revealed that the amount includes arrears for 2018 and 2019, Ksh33 million and Ksh47.8 million respectively.
As of May 31, 2020, Pamba claims that the underwriter owed the hospital Ksh357 million.
“Despite our best efforts, packages for 2018 and 2019 totaling Ksh33 million and Ksh47.8 million respectively remain unsettled. Jubilee’s payment for 2020 have not been commensurate with your business volume, with an outstanding balance of Ksh96 million for the year to date,” said Pamba in the letter.
In the letter, the Nairobi Hospital notified the Jubilee Insurance that their account was to be suspended on June 18.
In light of this, the hospital wishes to inform you that your account will be suspended effective Thursday 18th June 2020 at 9.00am,” announced Pamba.