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Fee-for-Service Model: A Sustainable Future for Healthcare in Kenya

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Kenya is taking a significant step toward achieving Universal Health Coverage (UHC) with the introduction of the Fee-for-Service (FFS) model, a transformative initiative reshaping healthcare delivery across the nation. Developed by the Ministry of Health and the Council of Governors (COG), the FFS model ensures continuity and sustainability for critical healthcare services, bridging the gaps left by the expiration of the Medical Equipment Service (MES) programme in December 2023.

Addressing the Gaps Left by MES

The MES programme equipped numerous health facilities with essential medical tools, but its conclusion highlighted the need for a sustainable replacement. Enter the FFS model—a bold public-private partnership designed to maintain Kenya’s medical infrastructure while empowering counties to focus on delivering quality care.

The FFS model shifts the financial responsibility for medical equipment from county facilities to contracted vendors, who cover installation, maintenance, upgrades, and consumables. This ensures that advanced equipment, including radiology machines, ICU tools, and surgical equipment, operates with a remarkable 95% uptime, guaranteeing accessibility when needed.

Advanced Healthcare Tools for All

Under the Social Health Authority (SHA), vendors will provide state-of-the-art medical equipment worth Sh113 billion to public health facilities. Outdated equipment will be replaced at no additional cost, ensuring Kenya’s healthcare system stays updated with the latest advancements. Additionally, the FFS model emphasizes training healthcare workers to use this technology effectively, empowering them with essential skills and adaptability.

Financial Sustainability and Local Empowerment

The FFS model introduces a financial structure that supports long-term sustainability. Counties generate revenue from SHA reimbursements, co-funding arrangements, and insurance payouts, retaining a portion for reinvestment in local healthcare. Payments to vendors are managed through a Special Purpose Account jointly overseen by the Ministry of Health and the COG. This structure allows counties to channel funds into improving healthcare resources and operations.

Implementation Tailored for Kenya

The FFS model is guided by a robust administrative framework, including an inter-participatory agreement between the Ministry of Health and the COG. National and county-level project management committees oversee the programme’s rollout, while a dedicated Secretariat coordinates activities across the country. This collaborative approach ensures that local health priorities shape the programme’s implementation.

Global Inspiration for Local Impact

The FFS model is not unique to Kenya; similar initiatives have proven effective worldwide. In South Africa, an FFS system brought critical imaging services to underserved areas, reducing patient travel costs. In India, a comparable model improved access to specialized services like dialysis in remote regions. These examples highlight the potential of FFS programmes to enhance healthcare delivery in resource-limited settings.

A Vision for Universal Health Coverage

Kenya’s FFS model reflects the Ministry of Health’s commitment to creating an accessible, efficient, and sustainable healthcare system. By equipping facilities with cutting-edge tools, empowering healthcare workers, and fostering financial sustainability, the FFS programme ensures that all Kenyans, regardless of location, can access timely, quality care. As the nation moves forward, the FFS model serves as a beacon of innovation, prioritizing patient care and community health for a brighter healthcare future.

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