National Hospital seeks public private partnership model amid funding gaps

The National Hospital Abuja has announced plans to seek public-private partnerships (PPP) in a bid to address the challenges posed by inadequate funding and function optimally.

Mohammad Mahmud, the Chief Medical Director, spekaing at a pre-event to mark the hospital’s 25th anniversary expressed grave concerns over the financial strain the hospital is facing, highlighting that 70% of its patients are covered by the National Health Insurance Authority (NHIA).

He noted that the NHIA’s highly subsidized fees result in minimal revenue, far below the cost of the high-quality services the hospital provides.

“Our fees are heavily subsidized, and with about 70% of our patients using NHIA, the revenue we generate is far below the cost of the high-quality services we provide. Additionally, the cost of drugs and medical equipment has skyrocketed,” Mahmud stated.

He pointed out that the hospital is further burdened by the care it provides to indigent patients, particularly from the National Trauma Centre, the Albino Foundation, and the Prevention of Mother-to-Child Transmission of HIV (PMTCT) program.

Mahmud revealed that millions of naira are spent to support these vulnerable groups, yet government funding remains insufficient.

The CMD further explained that the hospital is also grappling with several operational challenges, including delays in key infrastructure projects such as the construction of additional wards, the rehabilitation of internal roads, and general renovations.

Other pressing issues according to him include funding for outsourced services like cleaning and security, staffing shortages due to brain drain, and the need for separate budget lines for the Trauma Centre and maintenance of high-tech medical equipment.

Mahmud also underscored the financial impact of high electricity tariffs on the hospital’s operations. “Hospitals require a 24-hour power supply, especially with our six intensive care units that depend on ventilators. This results in high costs for diesel and electricity to maintain our equipment,” he explained, while advocating for a special electricity tariff for tertiary hospitals.

He however, acknowledge the recent government intervention that reduced electricity tariffs for hospitals by 50% as a commendable and welcome development.

Mahmud also emphasized the importance of exploring collaborations with both local and international funding sources, as well as appealing to Nigerians who are in a position to assist.

“The National Hospital is supposed to be the apex hospital in Nigeria, and the aim is to take it to the level where even tertiary hospitals will refer patients that are difficult for treatment,” he added.