The Nairobi Hospital has suspended the rollout of its recently announced service price review after 12 insurance companies dropped it from their provider panels in protest over steep treatment cost increases.

In a statement issued on August 11, the hospital said the decision was reached after a strategic meeting with the insurers, who had earlier taken action in response to the proposed price changes.

The facility explained that the suspension was intended to encourage continued dialogue and cooperation with insurance providers.

"Following a productive strategic meeting held today with key insurance providers, The Nairobi Hospital has agreed to suspend the implementation of its recently announced price review, effective immediately," the statement read.

Insurers had objected to what they described as a sharp and sudden rise in charges, with reports indicating that the review would have pushed treatment costs up by as much as 61 per cent. One insurance company argued that such an increase was unsustainable and would threaten long-term affordability for its members. Another insurer notified staff that it would suspend services at the hospital starting Tuesday, August 12.

The hospital said the talks with the insurers focused on concerns over the pricing structure and ways to ensure that both parties remained committed to patient-centred care.

However, behind the scenes, the facility is grappling with internal governance issues. A letter from the Board of Management, chaired by Herman Manyora, accused the Chief Executive Officer and the Company Secretary of making decisions without board approval. The board claimed that the controversial price hike, which prompted the insurers’ withdrawal, was introduced without following the required governance procedures.

The board also raised concerns about the hospital’s infrastructure, alleging that some facilities were in a state of decline. It said the inability to address these basic maintenance issues pointed to shortcomings in leadership.