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KNH’s Sh19 billion plan to improve operational efficiency

by Health Business
October 25, 2018
in News
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KNH’s Sh19 billion plan to improve operational efficiency
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By Mike Mwaniki

Kenyatta National Hospital requires Sh18.9 billion over a five-year period to improve operational efficiency, according to its ambitious five-year plan (2018-2023). Hospital management identified that the region’s biggest referral hospital will need Sh5.9 billion for equipment replacement and infrastructural development, noting that this is one of the key areas addressed in the strategic plan.

Faced with a deficiency of specialized human resource, the hospital requires additional funding of Sh2.5 billon per annum over and above the payroll funding shortfall of Sh2.7 billion in the current financial year. “In addition, the hospital processes are largely manual thus compromising the efficiency and effectiveness of service delivery,” said KNH Board of Management chairman, Inspector General (Rtd) Dr David Kimaiyo.

To address this, the National Referral and Teaching Hospital, KNH has undertaken business process re-engineering that has identified the major hospital processes for automation estimated at a cost of Sh1.5 billion in line with the National ICT Master Plan. “Also—in view of the emergence of security and safety concerns—the Hospital will require a total of Sh891 million during the plan period to strengthen its security and safety measures,” KNH will depend on funds sourced from internally, government grants and mobilized resources to realise the plan.

The referral facility will increase patient charges annually for five years to raise the billions needed for facilities upgrade. The referral hospital aims to raise Sh31.4 billion from patient fees starting this year and intends to spend Sh95 billion, including Sh10.7 billion on upgrades during the period.

“Cost-sharing fees will be reviewed annually during the implementation of this strategic plan resulting in five per cent increase in revenue per annum,” notes the plan. The five-year strategic plan allocates Sh2.9 billion for cancer, renal and kidney disease units. Cancer and kidney disease cases have been rising due to lifestyle changes. Poor households affected by the non-communicable diseases have piled pressure on the referral hospital, which is struggling to cope due to inadequate equipment.

Dr Kimaiyo, reiterated that for the successful implementation of the plan, it will require a combined effort of the various stakeholders. However, he emphasised that the primary responsibility of implementation the plan lied with the Board, management and employees of Kenyatta National Hospital.

“In this connection, the Board is committed to ensuring (the) successful implementation of this strategic plan and will continuously provide an enabling environment to facilitate the management and staff realise their full potential.” At the same time, Dr Kimaiyo noted: “Additionally, the Board together with the management will endeavour to build and sustain linkages and collaboration with all stakeholders to enhance synergy among players in the Health Sector in pursuit of the realisation of the ‘Big 4’ Development Agenda.”

President Uhuru Kenyatta pledged his commitment to roll-out Universal Health Coverage (UHC) countrywide by 2020. According to experts, achieving UHC means access to essential quality health services for everyone—including safe, effective and affordable medicines and vaccines—without financial hardship.

Dr Kimaiyo described KNH as a “major facilitator” of two key major flagship projects under the Social Pillar of the Kenya Vision 2030—construction and equipping a fully-fledged 300-bed hospital and construction of 2,000 accommodation units and conference facilities—for medical tourism. Established in 1901 as the former King George Hospital, KNH is at the apex of the National referral system and is the Hospital of choice in providing specialised medical care.

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Health Business

Health Business contains need-to-know features, news and case studies that explain the administrative and commercial issues affecting healthcare and hospital management. Health Business supports several high profile exhibitions - coverage of which is always timed for maximum impact. Regular topics include ICT, Finance/Funding, Facilities Management, Security, Health & Safety. Contributors range from government ministers through to top-level health administrators and association chairs.

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