Nairobi Women's Hospital Chief Executive Officer Dr Felix Wanjala has stepped aside from his position following an expose which showed some employees engaging in malpractices.
A series of WhatsApp messages released on Twitter last week showed doctors encouraging staff to commit malpractices in order to meet the hospital's targets.
Wanjala said he doubted the allegations, but would step aside to allow a probe.
"These allegations are very serious in nature. I have taken time to think about this, although I don't believe the allegations are true I would want our patients to regain confidence in us as a healthcare provider," he said in a statement on Saturday.
He added, "To achieve this we need an independent review of our operations. I have this afternoon written to the Chairman of the board informing him of my decision to step aside from my position as CEO effective immediately to allow the investigation team to do their work."
This week, the Association of Kenya Insurers suspended Nairobi Women's Hospital from its panel of approved institutions, pending a thorough review of quality and cost of the institution's services.
A statement by the Nairobi Women's Hospital board dated February 3 had cast doubt on the authenticity of the messages.
AKI, however, advised that the suspension will not affect insured customers who are already admitted in the hospital.
"Billing and settlement of expenses incurred by these customers will not be affected," AKI manager Hazel King'ori said.
The insurance firms advised their clients to seek medical services from other healthcare providers in their panel.