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Cape Coast Teaching Hospital in financial crisis; begs NIA to settle over ¢6m debt

The Cape Coast Teaching Hospital has been plunged into what could be described as significant financial distress, and currently unable to settle over five million-cedi debt owed its suppliers.

As at the end of December 2018, the hospital’s indebtedness to suppliers of essential medicines and non-drug consumables stood at 5, 850,000 cedis.

The situation has forced suppliers to cease delivering such essential medicines and non-drug consumables on credit, a situation the authorities say, is impacting negatively on healthcare delivery at the facility.

Records from the hospital indicates the National Health Insurance Authority (NIA) owes the Cape Coast Teaching Hospital a total of 6,174,786.48 cedis being claims for services rendered to national insurance subscribers from May to December 2018.

Though claims have been made to the NIA for reimbursement, the amount is yet to be paid to the hospital.

“The long delay in the repayment of claims seriously affects cash flow and operations of the hospital,” a distress letter from the authorities of the Hospital to the Chief Executive of NIA indicated.

“The Cape Coast Teaching Hospital wishes to make a distress call for the payment of its claims following financial difficulties that it is going through,” the letter, dated March 11, 2019 appealed.

The letter, which has since March 22 been received by the NIA, stated the hospital’s inability to secure the needed supplies, is likely to affect the delivery of quality health services at the facility.

Meanwhile, the Cape Coast Teaching Hospital has complained about the continuous 10 per cent retention claims by the NIA, something the hospital authorities argued is affecting their financial situation.

“The continuous retention of 10 per cent of claims submitted, when payments are made continue to affect our ability to recover the cost of procuring suppliers, and has further added to our inability to fully meet our commitment to our suppliers.

“As at the close of the year 2018, a total amount of 3,189,400.40 cedis has accumulated by way of the 10 per cent retention since October 2014,” the hospital stated in the letter.

Signals picked by indicates the NIA is considering “something” out of the over 6 million cedis claims in the next batch of payments to its

By Stephen Kwabena Effah||Ghana

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