The Rural and Urban Private Hospitals Association of Kenya (RUPHA) has warned that the government's failure to settle outstanding bills threatens the country's healthcare system.

RUPHA Chairman Brian Lishenga, speaking at the Hennet Health NGOs symposium in Nairobi, said negotiations with the government on clearing the debt have stalled, raising concerns over the sustainability of private health facilities.

"The government insists there is no money, but unless healthcare is properly funded, service quality will deteriorate, and more hospitals will be forced to shut down," Lishenga said.

He urged the government to establish a sustainable health financing model to prevent the crisis from escalating, noting that the outpatient reimbursement structure under the Social Health Authority (SHA) is overly complex and impractical.

RUPHA also called for the expedited payment of claims owed to hospitals under Medical Administrators Kenya Limited, which manages medical schemes for police officers and teachers.

The standoff between RUPHA and the government involves KSh 30 billion in unsettled claims.

On Tuesday, the Ministry of Health dismissed RUPHA's concerns, stating it will settle pending bills inherited from the defunct National Health Insurance Fund (NHIF) only after completing an ongoing reconciliation process.