Gachagua called on hospitals to demand upfront payments from patients seeking treatment under the SHA scheme.
He argued that this would help prevent facilities from falling into financial distress due to unpaid claims.
“The system is not working as it should. Hospitals are suffering because they are not being paid on time,” he said.
“If this continues, many of them will not be able to operate. They must now ask for payment before offering services.”
He further claimed that the government owes hospitals approximately KSh 90 billion in pending bills.
According to him, the delay in settling these claims has placed a heavy burden on both public and private health institutions, some of which are already struggling to stay afloat.
Gachagua urged the government to prioritise the immediate release of the funds owed to hospitals.
He warned that failure to do so could lead to widespread disruption in the healthcare sector, affecting millions of Kenyans who rely on these services.
“The government must release the KSh 90 billion owed to hospitals without delay. This is not just about money; it is about the lives of Kenyans who depend on these facilities,” he said.
He also questioned the preparedness of the SHA to take over from the National Health Insurance Fund (NHIF), suggesting that the transition may have been rushed without adequate planning.
Healthcare providers have in recent months raised similar concerns, complaining about delayed reimbursements and operational challenges under the new system.
Some hospitals have already scaled down services or threatened to withdraw from the scheme altogether.