Only four counties have recognised the Facilities Improvement Fund which allows health facilities to manage the funds they generate.
The counties are Kakamega, Isiolo, Mombasa and Elgeyo Marakwet.
In the FIF, the funds are managed by Health Services Management Committees. It was operational but stopped in 2013 when the health sector was devolved.
Counties are governed by the Public Finance Management Act, 2012, where health facilities draw funds generated through cash, insurance schemes and grants from the County Revenue Fund.
Speaking to KNA, the president of the Kenya Medical Association Dr Simon Kigondu said the FIF bill will be necessary to ensure money generated in health facilities is used to improve patient care and not disappear in county coffers.
He said it leads to better health outcomes at the individual health facilities level.
“FIF is a fund that since the onset of devolution was centralised to the county government fund as opposed to allowing it to remain within the facilities,” Kigondu said.
He said counties that have not implemented FIF face a lot of challenges, leading to demotivated health workers and poor accountability for money generated at health facilities.
Public hospitals have been relying on funding by the county treasury to operate, causing delays in service delivery due to procedural hitches.
The kitty was meant to provide a steady, regular and predictable source of funding for health facility operations across Kakamega county.
Under the fund, all public hospitals generate their own revenue and spend the cash.
“It is my belief that if properly implemented, the many challenges experienced by the facilities will be a thing of the past. Besides, the kitty will stimulate increased revenue collection by health facilities and provide an alternative source of funding for the facilities,” Oparanya said last year.
He asked the management committee to ensure efficient utilisation of the funds and other resources to provide access to quality services to Wananchi.
“The committee must ensure prioritisation of key commodities, equipment and services. I expect the Advisory Committee to give timely guidance on prudent use of the funds and submit timely reports to county treasury,” the governor said.
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