The Ministry of Health has dismissed claims that mystery suppliers will receive billions from the Social Health Authority for the lease of medical equipment under the National Equipment Service Program (NESP).
In a statement on Wednesday, December 4, Health CS Deborah Barasa claimed that a transition strategy was developed following the expiration of the Medical Equipment Service (MES) program in December 2023 to sustain the gains achieved under the program.
Barasa noted that a select technical committee comprising representatives from the Ministry of Health and Council of Governors was established to oversee the transition and a resolution was made on a model for procurement of medical equipment services.
"As resolved by the Council of Governors in collaboration with the Ministry of Health, a Fixed Fee-for-Service (FFS) Model was adopted for the procurement of medical equipment services. This innovative approach shifts the financial responsibility of medical equipment from government facilities, including county facilities, to contracted vendors.
"The Fixed Fee-for-Service (FFS) model allows vendors to supply, maintain, and upgrade state-of-the-art equipment at no upfront cost to county health facilities, enabling counties to focus resources on patient care. This model is different from the leasing option as stated in the false publication," Barasa remarked.
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She further stated that a transparent tendering process, guided by the Public Procurement and Asset Disposal Act, was undertaken to operationalize the model.
"Public advertisements were made in MyGOV bulletin, the Ministry of Health website, and the Public Procurement Information Portal in June 2024. Tender submissions were received and opened in accordance with the Public Procurement and Asset Disposal Act, in the presence of representatives from the Ministry, County Governments, and bidders," Barasa explained.
The CS disclosed that after a careful evaluation process, contracts were awarded to seven qualified bidders in October 2024.
Barasa added that an administrative framework was established to guide the implementation of the FFS model, with county governments signing agreements to facilitate the program.
"Under this arrangement, suppliers invest in and place medical equipment in county health facilities at no upfront cost but will be paid fees for services rendered," she stated.
The CS affirmed that the model fosters transparency, efficiency, and sustainability, adding that SHA reimburses facilities for gazetted tariff amounts.
