Health facilities run by the Uganda Protestant Medical Bureau (UPMB) have warned that they are at risk of sliding into financial losses, following a halt in donor funding and growing uncertainty over continued government support.
Dr Charlotte Aguti Ongom, the Executive Director of Bwindi Community Hospital, told a meeting attended by officials from the Ministry of Health and the Bureau that more than 45 per cent of the hospital’s operations are funded by donors.
She said that although they receive Primary Health Care (PHC) grants from the government, several hospitals in her region have experienced funding cuts, forcing them to seek alternatives such as adjusting the cost of services.
However, the exact amount the government allocates annually to Private Not-for-Profit (PNFP) hospitals remains unclear. Over the years, sections of the public have raised concerns that some facilities receiving government funding still charge fees comparable to, and in some cases higher than, private hospitals.
Dr Ongom explains that with dwindling funding, some hospitals were compelled to slightly increase service fees to remain operational, a move that has sparked public backlash. She adds that the funding gaps have significantly disrupted critical programmes in maternal health, HIV services, and laboratory systems, while operational costs continue to rise.
She warns that if prices are kept too low amid shrinking support, the facilities risk turning into what she calls “private for loss” hospitals.
Meanwhile, Dr Bildard Baguma, the Executive Director of Joint Medical Stores, has advised health facilities to tighten their financial discipline and become more innovative in sustainably generating income, noting that government grants themselves are not guaranteed. He revealed that the PHC conditional grant was nearly scrapped two years ago and was only reinstated after prolonged negotiations.
As a long-term solution, Dr Charles Olaro, the Director General of Health Services, has urged Private Not-for-Profit (PNFP) hospitals to adopt the government’s approach of integrating services. He noted that heavy donor involvement often led to duplication of services, which could be avoided through coordinated investment. He added that the Ministry plans to roll out a framework to guide health providers in transforming fragmented funding into a unified national health outcome.
Dr Baguma further disclosed that during the current financial year alone, Protestant Medical Bureau facilities registered a business volume of nine billion Shillings at Joint Medical Stores, but over 3.9 billion Shillings of that amount is currently tied up in unpaid debt. He says this underlines the urgent need for facilities to cost their services accurately, even as they pursue the integration of care.
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