Nairobi Hospital reveals cash cow pharmacy
The Nairobi Hospital sold drugs worth Kes 3.2 billion last year which made up 34 per cent of the premier healthcare centre’s revenues of Kes 9.9 billion.
Lab tests at the hospital brought in Kes 1.8 billion while the facility made Kes 1.5 billion from admitting patients at the hospital.
Drugs and lab tests have become the mainstay for private hospital businesses sustaining operations even during a difficult year.
The Nairobi Hospital managed to reduce loses to Kes 561 million in 2020 from a loss of Kes 1 billion in 2019 despite a 23 per cent decline in admissions and a halt in offering surgeries.
“The key drivers Nairobi Hospital revenue included pharmacy, laboratory, bed fees, surgical income and Radiology, which contributed 34 per cent, 20 per cent, 15 per cent, 8 per cent and 7 per cent respectively to the total revenue,” Nairobi hospital’s new boss James Nyamongo said in the Kenya Hospital Association annual report.
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The government imposed restrictions on movement including curfews, and the cessation of movement into some counties but Kenyans stayed away from hospitals fearing the exposure to Covid-19 patients.
This cut hospital revenues while boosting insurance companies who often have settle the huge cost of health care.
Health insurance companies made Kes 1.3 billion in underwriting profits last year as Kenyans stayed away from hospitals amid fears of contracting the Covid-19 virus.
The previous year, medical insurers had made a loss of Kes 75 million.
Insurance dividend payout jumped 79 per cent to Kes 4.4 billion last year from Kes 2.4 billion paid out in 2019 rewarding shareholders despite the ravages of the coronavirus pandemic on profitability.
