The board of the State Health Authority (SHA) has dismissed CEO Elijah Wachira, citing concerns over the ongoing chaotic transition from the National Health Insurance Fund (NHIF) and allegations of financial mismanagement.
In his place, Robert Ingasira, Director of Financial Services, has been appointed acting CEO.
The SHA board specifically criticized Wachira for mismanaging the transition and for allegedly prioritizing payments to private hospitals for services provided to SHA members, to the detriment of public hospitals.
The board also pointed to rising pending bills as evidence of mismanagement, noting that hospitals have been forced to demand cash payments from patients due to the backlog.
Wachira, however, has denied all allegations, including claims that funds were diverted or misappropriated.
“I am not aware of any diverted funds,” he stated.
The board’s chairman, Abdi Mohamed, did not respond to requests for comment.
Wachira, who was appointed CEO of NHIF in October 2023 following a competitive selection process, previously served as the Managing Director of CIC General Insurance.
At the time of his appointment, former NHIF Board chairman Michael Kamau praised him as a seasoned professional who would bring valuable expertise to the authority during its transition.
According to minutes from a recent board meeting, the SHA has made progress in addressing pending bills, clearing 50% of Sh19 billion in arrears in just over a month a significant achievement since the authority’s establishment.
However, the board expressed concern that Wachira’s actions, including diverting Sh1.6 billion allocated to settle debts owed to public hospitals, risked undermining the delivery of healthcare services.
“This diversion of resources nearly caused a paralysis of healthcare services, despite the government’s best efforts to clear the outstanding debts,” the board said in the meeting minutes.
This marks the second leadership change at SHA in less than two months.
The first was the dismissal of Dr. Timothy Olweny, the previous chair, shortly before SHA’s official launch.
A recent report revealed that private health facilities are continuing the trend set by NHIF, submitting more claims and receiving higher payments than their government counterparts.
Last month, SHA enrolled 4,583 government-owned health facilities, 2,500 private facilities, and 548 faith-based organizations.
However, private facilities accounted for 85,700 authorizations, compared to 78,100 for government hospitals.
Private facilities also made claims totaling Sh1.2 billion, compared to Sh1.1 billion from government facilities.
The shake-up at SHA underscores the ongoing challenges in the transition from NHIF and the growing pains of the newly established health authority.
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