PESHAWAR: The Khyber Pakhtunkhwa Health Foundation is waiting for approval from the finance department to release funds for awarding contracts to private organisations to manage seven hospitals.
The Health Foundation, a government body formed under the KP Health Foundation Act 2016, is handing over hospitals to private sector organisations where doctors, nurses, and paramedics are unwilling to serve. Under these contracts, private firms receive government funds and hire staff as needed to provide healthcare services to local communities.
So far, 19 hospitals have been outsourced, mostly in the merged districts, to improve service delivery. Of these, contracts for seven hospitals expired in June 2023. These were temporarily extended after approval from the provincial cabinet. The Board of Governors (BoG) of the Health Foundation has already approved the selection of private organisations to run these hospitals, but the foundation is still waiting for the finance department to approve about Rs3 billion to move forward.
Sources said the seven hospitals, located in merged districts, are facing serious financial problems and are unable to provide full services. They urged the government to hand over the hospitals to the newly selected organisations so that healthcare services can continue without disruption.
They added that the law department has already cleared the contracts, but the Health Foundation cannot implement them without the required budget. “The foundation has repeatedly requested the health department to speed up the process, but there has been no progress yet,” a source said.
Health department officials confirmed that they received requests from the foundation. They said the tendering process for the seven hospitals was completed according to the rules and recommendations of the Cabinet Supervisory Committee. “The selection of new organisations has also been approved by the foundation’s board,” they added.
ALSO READ>>>Sindh government and China to launch mini-truck assembly line in Karachi
The Health Foundation is ready to sign the contracts, but the process is on hold due to a lack of funds. Officials have urged the health department to act quickly and allocate the budget so the hospitals can be handed over to the new operators.
Sources also said that delays earlier were due to an incomplete board, but a new BoG was appointed in early April. This raised hopes that the selected organisations would take charge of the hospitals, especially since the previous partners were struggling financially and unwilling to continue.
“The new board has approved the selection, but without funds, the foundation cannot proceed,” a source said. He added that the Health Foundation has requested immediate funds as many patients depend on these hospitals and any further delay will increase their suffering.
Staff at the hospitals have already started protesting over unpaid salaries since the previous contracts ended and no more funds are being received from the government. “The Health Foundation is seeking funds to transfer control to new organisations and ensure that patients continue to receive care,” sources said.
