The Chief Medical Director of the National Hospital, Abuja, Muhammad Mahmud, has called for a public-private funding model to enhance the hospital’s operations and ensure optimal functionality.
Speaking during a news briefing on Monday in Abuja to mark the hospital’s 25th anniversary, Mr. Mahmud emphasized the need for hospitals to explore alternative funding sources beyond government allocations. He pointed out that relying solely on government funds is not sustainable for the long-term growth and efficiency of healthcare institutions.
“Hospitals do not have to depend on the government to fully fund their projects. Private funding should be seen as a crucial complement to what the government provides,” Mr. Mahmud said. “We need to bring in Public-Private Partnerships (PPP). From our banks to other financial institutions within the country, this would offer easier access to funding for the healthcare sector. We can also explore collaborations with international funding sources. This PPP model could involve public-private or even private-private funding arrangements.”
The National Hospital, according to Mr. Mahmud, is actively seeking such funding avenues and is reaching out to external donors and philanthropists for support. He urged well-meaning Nigerians, particularly those in influential positions, to contribute to the hospital’s development, highlighting its status as a national pride.
Mr. Mahmud also shed light on the hospital’s financial challenges, particularly the high costs associated with power generation. He noted that a significant portion of the hospital’s revenue is spent on electricity, as many critical medical equipment require continuous power to avoid life-threatening situations.
“The recent intervention by the government to reduce electricity tariffs for hospitals by 50 percent is commendable. This reduction is a welcome relief, but more needs to be done to alleviate the financial burden on healthcare facilities,” he added.
Addressing concerns about the alleged suspension of services to National Health Insurance Authority (NHIA) subscribers, Mr. Mahmud firmly denied these claims. He clarified that the hospital has never ceased treating NHIA patients and that they continue to constitute a significant portion of the hospital’s clientele.
“Seventy percent of our patients are NHIA subscribers. We have never, ever pushed NHIA patients away,” he stated.
However, Mr. Mahmud acknowledged that there are ongoing challenges related to the tariffs or premiums paid by NHIA subscribers. He explained that these premiums have not been reviewed for 12 years, despite the rising costs of commodities and services.
“The premiums paid by subscribers do not reflect the current economic realities, which has made it increasingly difficult for hospitals to cover the costs of providing care,” Mr. Mahmud said.
He called for an urgent review of NHIA premiums to align them with present-day economic conditions, ensuring that hospitals can continue to provide quality healthcare without compromising their financial stability.
