Author: Edward Frimpong
University of Science & Technology, College of Architecture & Planning,
Department Of Building Technology
Email: frimedward@yahoo.com
INTRODUCTION
The National Health Insurance Schemes are semi-autonomous and as such their operations are not restricted under the controller and accountant Generals’ Department which handles all financial matters concerning government activities and operations through the government treasury (NHIS Act 650). After the introduction of health insurance schemes in the country, cases of mal-administration of the funds and delays in payment of the medical bills have been reported (Daily Graphic, July 2014). Ghana in its search for a framework to regulate its procurement system enacted the public procurement Act 663 in 2003. The act came to meet the basic principles of professionalism, competition, transparency, effectiveness, efficiency and value for money in public institutions (Zomboko, 2012) such as the NHIA. Many public procurement activities suffer from neglect, lack of direction, poor coordination, lack of open competition and transparency, deferring levels of corruption and most importantly not having a cadre of trained and qualified personnel who are competent to conduct and manage such procurements in a professional, timely and cost effective manner (Kiama, 2004). To help address such issues Ghana’s Public Procurement Authority mandates all Public Institutions to comply with Act 663. The above, notwithstanding, (Ameyaw, et al. 2012) identified non-compliance with provisions of the law, deliberate controlling of competition, inadequate skills of procurement practitioners as draw backs to the realisation of the procurement law. This research explores the National Health Insurance Scheme to find out if such challenges are prevailing and are contributing factors for the authority’s inability to pay claims on time.
According to NHIA mid-year report in 2013, the NHIA has lost about 20% of its clients due to poor services provided by the service providers as a result of failure to implement public procurement procedure and ensure that the clients get value for money through quality service and care and this has not been effective as expected. According to Thursday, July 3, 2014 (page 16)’s publication of Daily Graphic “The Christian Health Association of Ghana (CHAG) had started rejecting National Health Insurance (NHIS) Subscribers at its facilities. It explained that they had been forced to take that decision due to the inability of the National Health Insurance Authority (NHIA) to pay CHAG health facilities outstanding bills and economic tariffs for services rendered”. The paper further reported that “the said decision was to avoid further deterioration in the quality of the services provided and the imminent collapse of CHAG health facilities”. This therefore forms the basis of the study where it seeks to investigate into the factors militating against the successful implementation of the public Procurement Act 663 in Ashanti NHIA.
