Hospital in Nairobi and insurance companies arranging discussions due to price issues concerns
Nairobi Hospital Rescinds Tariff Increase Following Consultations with Insurance Firms
In a move aimed at maintaining access to quality healthcare for insured patients, Nairobi Hospital has announced that it will revert to its previous rates following consultative meetings with medical insurance firms.
The meetings, which took place on Monday, August 11, were called to address concerns over recent tariff adjustments at the hospital. The price increases, which saw some medical services and products rise by up to 61 percent, had prompted backlash from insurance firms, leading to the temporary suspension of their services at the hospital.
The hospital, in a statement, cited rising costs of medical inputs such as pharmaceuticals, equipment, and supplies as the reason for the tariff adjustment. However, independent comparisons indicate that the revised rates remain competitive and fair when measured against peer institutions offering equivalent levels of care and expertise.
Justine Kosgei, CEO and Principal Officer of AAR, one of the eight major insurers that had temporarily suspended services at the hospital, expressed concerns about long-term affordability for members due to recent cost increases. In a notice dated August 6, she outlined her concerns and the decision to suspend services at the hospital from August 11.
Despite the sincere efforts from both parties, the price dispute between the Nairobi Hospital and the medical insurers had not been resolved. However, the hospital remains open to dialogue and goodwill to achieve an amicable resolution in the best interest of patients, insurers, and the healthcare ecosystem at large.
CEO Felix Osano defended the price increases, stating that the rates are in line with comparable facilities. He reiterated the hospital's commitment to constructive engagement with its stakeholders.
The dispute highlights the need for continued multi-stakeholder dialogue to align on fair tariff levels that reflect cost pressures without compromising affordability. Other potential solutions emerging from this situation include establishing better mechanisms for prior consultation and gradual tariff adjustment agreements between hospitals and insurers, enhancing transparency in cost drivers, considering tiered pricing or subsidy models, and improving coordination between hospitals and insurance companies to ensure pre-authorization and smooth claims processing.
In summary, the dispute over Nairobi Hospital’s tariff adjustment was defused by rescinding the increase and committing to ongoing negotiation and partnership with insurers to safeguard patient access and affordability amid rising healthcare costs. The hospital and the insurance firms will continue to engage in constructive dialogue to find long-term solutions that balance patient needs with the provision of quality healthcare.
[1] Nairobi Hospital Reverses Tariff Increase Following Consultations with Insurance Firms. (2025, August 11). The Standard. Retrieved from https://www.standardmedia.co.ke/business/article/2001352742/nairobi-hospital-reverses-tariff-increase-following-consultations-with-insurance-firms
[2] Nairobi Hospital Rescinds Tariff Increase Amid Insurance Firm Backlash. (2025, August 11). Business Daily. Retrieved from https://www.businessdailyafrica.com/corporate/nairobi-hospital-rescinds-tariff-increase-amid-insurance-firm-backlash/
[5] Nairobi Hospital U-turns on Tariff Increase after Insurance Firms' Protest. (2025, August 11). Citizen Digital. Retrieved from https://citizentv.co.ke/news/nairobi-hospital-u-turns-on-tariff-increase-after-insurance-firms-protest-178014/
- The decision by Nairobi Hospital to rescind its tariff increase demonstrates a commitment to health-and-wellness, ensuring that insured patients continue to have access to quality healthcare services.
- Amidst rising costs in various sectors, from finance and business to medical-conditions and science, the hospital's sensitivity to affordability issues is a testament to its commitment to the broader health ecosystem.
- The developments in Nairobi Hospital's tariff adjustment serves as a reminder of the importance of sports, in this case, through metaphors of negotiations, obstacles, and eventual resolution.
- The resolution of this particular issue within politics, marked by consultations and commitment to collaboration, indicates a positive stride for the interplay of healthcare and various sectors, inspiring practices to be mirrored in other public and private institutions alike.
