Payment delays hit patient care at 13 outsourced govt hospitals in Pakistan

Peshawar [Pakistan], February 8 : Patient care at 13 government hospitals operating under outsourcing arrangements continues to deteriorate, as private organisations managing these facilities have not received pending payments since July last year due to ongoing upgrade work at the accountant general office, according to a report by Dawn.
Officials stated that the health department had released PKR 413 million for hospitals outsourced to private entities under the public-private partnership model, but the funds have yet to be transferred to the organisations concerned, resulting in a decline in hospital services.
They explained that underperforming hospitals were transferred to private organisations via the Health Foundation (HF) to improve patient care, Dawn reported.
The officials said the HF has so far outsourced 19 hospitals, for which the government allocates funds every quarter, subject to performance verification by committees comprising representatives from the health department, district administration, and the HF.
However, they said 13 hospitals have been awaiting payments for the July-September quarter, leading to financial difficulties for staff. Officials also noted that another instalment for the October-December period is overdue, though organisations are still awaiting disbursement of funds that have already been released, Dawn reported.
Last month, the district health officer (DHO) of Upper Kohistan wrote to the HF, requesting termination of the contract awarded to the National Integrated Development Foundation to operate the district headquarters hospital in Dassu. The DHO maintained that the organisation had completely failed to deliver services to the public due to repeated staff strikes.
"There are only two consultants, whereas the agreement requires 11. Moreover, indoor admissions are almost nonexistent," he stated.
Sources said that under contractual agreements, the HF, relevant DHOs and private organisations are responsible for ensuring service quality and for receiving allocated budgets for medicines, operational expenses and staff salaries. However, they added that payment delays to these organisations have become a persistent problem.
Sources said the new HF management had recently introduced a fund-flow mechanism under which organisations are expected to receive payments within 20 days of submitting bills, but delays have persisted due to upgrade work at the accountant general's office. When contacted, HF Managing Director Dr Khizer Hayat Khan attributed the issue to "technical problems," according to the Dawn report.