Eight insurance firms suspend cover at Nairobi Hospital over soaring treatment costs
The firms involved include Madison Insurance, First Assurance, Minet, Old Mutual, Britam, AAR, CIC, and Pacis Insurance.
Eight leading insurance companies have announced a temporary suspension of their insurance services at Nairobi Hospital, citing a recent sharp increase in treatment costs imposed by the hospital.
The firms involved include Madison Insurance, First Assurance, Minet, Old Mutual, Britam, AAR, CIC, and Pacis Insurance. AAR Insurance expressed concerns about the affordability of the new rates for its members.
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“With our customers' best interests at heart, we engaged The Nairobi Hospital in open and constructive discussions, aiming to agree on a more sustainable, volume-based model that would safeguard both quality and affordability,” the company said.
However, the talks failed to produce an agreement, leading to a suspension of AAR’s services at the hospital starting Monday, August 11, 2025.
Similarly, CIC Group informed its staff that it will suspend services from Tuesday, August 12.
“We have been engaging The Nairobi Hospital on the cost of care at their facility. As you may be aware, and may have picked from the reports (specifically the average cost report) that we share with you, the provider has revised their prices,” CIC said.
The insurer added that the rates were “not only unsustainable, but those that cannot be remedied, not even with a premium revision.” Efforts to reach a mutually acceptable position failed, prompting the suspension decision.
Most of the affected insurers plan to halt their services next week, responding to what is described as a price increase of up to 61 per cent on critical services such as scans, ultrasounds, and bed charges.
The hospital, which has faced leadership challenges recently, confirmed the tariff adjustments as part of its effort to sustain high-quality healthcare.
In response to the suspension, Nairobi Hospital issued a statement on Saturday saying it is engaging insurance firms in consultative meetings to address concerns over the tariff revisions.
The hospital invited all affected insurers to a forum scheduled for Monday, August 11, 2025, aiming to find common ground that protects patient care and maintains access to quality medical services.
“The Nairobi Hospital wishes to inform its patients, partners, and the general public that it is currently engaging insurance companies in constructive discussions following concerns over recent tariff adjustments,” the statement read.
Hospital CEO Felix Osano acknowledged the concerns but said the tariff changes are necessary to sustain the quality of healthcare offered. He pointed out that independent comparisons show the hospital’s rates remain competitive and fair compared to peer institutions delivering similar care.
“We recognise the concerns raised by our insurance partners, but reiterate that the adjustments are essential to maintain the high standards of healthcare our patients deserve,” Osano said. He expressed hope that continued dialogue and goodwill would result in an amicable solution benefiting patients, insurers, and the wider healthcare system.
Osano reiterated the hospital’s commitment to providing accessible and sustainable healthcare, underscoring this as the facility’s top priority.
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