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Paidamoyo Chipunza Senior Health Reporter
The Private Hospitals Association of Zimbabwe (PHAZ) says it supports the non-renewal of operating licences for four healthcare funders which are failing to reimburse them at Government gazetted tariffs.
These are Cimas, Sovereign Health, MASCA and First Mutual Health medical aid societies.
In a statement yesterday, PHAZ said non-compliance with the 2014 tariffs by a few but major medical aid societies was crippling service delivery at private hospitals.

“All private hospitals in Zimbabwe are facing massive critical challenges in the delivery of healthcare. This is worsened by the failure by some medical aid societies to reimburse claims timely and at the current tariffs,” said PHAZ.
PHAZ said they were facing viability challenges.

It said the current economic environment was negatively impacting on the operations of private hospitals.
“Much of the equipment is now obsolete. Experienced skills retention has also been a significant problem over these years,” said PHAZ.
Medical aid societies say the newly gazetted tariffs are not justified.

The hospitals lamented that while subscription fees were collected in advance from members, service providers were only paid mostly after 90 days yet drug suppliers and consumables required cash upfront.

“This has resulted in some private hospitals facing collapse due to delayed and even non-payment of claims by medical aid societies,” it said.
PHAZ said medical aid societies should publicise total subscriptions collected from members, claims ratios and levels of investment in the same way they publicise total payments made to service providers.

“It is important for all customers to understand that the patient is the debtor and medical aid societies make payments on behalf of the patient. Service to patients can be funded in other ways such as company schemes or individual schemes arranged directly with service providers,” said PHAZ.

Meanwhile, the four medical societies are devising a workable plan following Government’s threat not to renew operating licences for defaulting society.

In a statement, Cimas said: “Cimas is fully aware of the reality that in the current economic environment, the majority of its members cannot afford an increase in membership contributions.”

“Cimas is therefore faced with the alternatives of either increasing membership contributions, which it believes would cause considerable financial hardship to the majority of its members, or defying the directive of the ministry with the risk that its licence, which expires at the end of March next year, may not be renewed.”

Sovereign Health chief executive officer Mr Mudiwa Mundawarara said its board was meeting today to strategise.
MASCA chief executive Mr Joe Sigola said they were deliberating on the matter.

No comment could be obtained from First Mutual Health.