Editor's Review

The Ministry of Health has uncovered a disturbing trend of fraud among healthcare facilities under the Social Health Insurance (SHA) program.

The Ministry of Health has uncovered a disturbing trend of fraud among healthcare facilities under the Social Health Insurance (SHA) program.

In a statement Monday, August 25, Health Cabinet Secretary Aden Duale said audits revealed that some hospitals and clinics have been inflating bills, falsifying records, and submitting claims for services never provided.

According to the CS, investigators found that certain facilities were engaging in upcoding, where patients were billed for more expensive procedures than those actually performed. 

Other institutions were involved in the falsification of records, altering or creating false medical documentation in direct violation of the Social Health Insurance Act and its regulations.

There were also cases where outpatient visits were illegally converted to inpatient admissions, allowing facilities to claim higher reimbursements, and incidents of phantom billing, where services were billed for patients who did not exist.

File image of the Social Health Authority (SHA) building in Nairobi

Duale went ahead to reveal some examples, including Nabuala Hospital in Bungoma which submitted multiple Caesarean section claims for the same patient in a short period, along with unsupported maternity claims. 

Kotiende Medical Centre in Homa Bay fabricated clinical documents, with one person signing off for both day and night shifts over consecutive days. 

Vebeneza Medical Centre in Nairobi reportedly converted outpatient visits into inpatient claims and repeatedly admitted its own employees under suspicious circumstances.

Other facilities, including Jambo Jipya Hospital in Mtwapa and New Manyalo Nursing Home in Wajir, submitted fraudulent claims for normal deliveries and exceeded bed capacity by admitting patients already registered elsewhere. 

In Mandera, a network of facilities allegedly colluded to submit over 300 claims for patients supposedly admitted on the same dates across multiple locations.

"This is just a brief overview. We will make a detailed report public to ensure full transparency. To all healthcare providers: consider this a final warning. We are watching. Any facility, doctor, or patient found to be involved in fraudulent activities will be held liable and face the full force of the law. 

"We've already initiated the process to recover paid monies and will involve law enforcement to prosecute perpetrators," the CS said.