The Nairobi Hospital has announced that it has suspended the implementation of the recently announced price review of certain charges following a meeting with key insurance providers.
Chief Executive Officer Felix Osano said following a productive strategic meeting with key insurance providers, the hospital agreed to suspend the implementation of its recently announced price review, effective immediately.
“This decision, made in good faith, responds to requests from our valued insurance partners to allow for further consultation and collaborative dialogue.”
“The meeting saw participation from senior representatives of leading medical insurance providers, including Old Mutual, CIC, Britam Health, AAR, First Assurance, Heritage, Kenindia, Kenya Alliance, G.A, Madison, Fidelity and Minet,” he said in a statement.
He added the open and constructive discussions addressed concerns regarding the proposed pricing structure, ensuring alignment with our shared commitment to patient-centered care.
While announcing the review, Osano had explained that independent comparisons show the hospital’s revised rates remain competitive and fair when measured against peer institutions providing similar levels of care and expertise.
“We recognise the concerns raised by our insurance partners, but reiterate that the adjustments are essential to maintain the high standards of healthcare our patients deserve,” Osano said.
The CEO expressed confidence that dialogue and goodwill would lead to an amicable resolution in the best interests of the parties, including patients, insurers, and the wider healthcare ecosystem.
Osano reaffirmed the hospital’s commitment to delivering accessible and sustainable healthcare, emphasising that this remains the facility’s priority.
Several insurance companies announced plans to suspend services at the facility, citing a substantial increase in treatment charges.
They described the steep hike as unsustainable, warning that it could prompt a collective withdrawal of coverage and potentially affect clients who depend on insurance for access to medical care.
This is after the hospital increased the cost of services by as high as 61 per cent on key services such as scans, ultrasounds and bed charges.
The eight companies include Madison Insurance, First Assurance, Minet, Old Mutual, Britam, AAR, CIC and Pacis Insurance.
For instance, AAR Insurance noted that the hike in the recent cost raises concerns about long-term affordability for its members.
“With our customers’ best interests at heart, we engaged The Nairobi Hospital in open and constructive discussions, aiming to agree on a more sustainable, volume-based model that would safeguard both quality and affordability,” the statement read in part.
“Despite a sincere effort from both parties, we were unable to reach mutually acceptable terms this as a result, AAR Insurance member access to The Nairobi Hospital will be temporarily suspended effective Monday, 11 August 2025.”
CIC Group, on the other hand, wrote to its staff members saying it will suspend the services from Tuesday, August 12.
“We have been engaging The Nairobi Hospital on the cost of care at their facility. As you may be aware, and may have picked from the reports (specifically average cost report) that we share with you, the provider has significantly revised their prices,” the statement read in part.
“We consider their rates not only unsustainable, but those that cannot be remedied, not even with a premium revision. As our intention is to safeguard the sustainability of the policies we administer and the operations of our organization, we have been engaging the provider on the revision but have regrettably not been able to reach a mutually agreeable position.”
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