Govt steps in to rescue PSMAS, affiliates

Herald Reporter

The Government is “deeply disturbed” by the phenomenon of corruption, mismanagement and other malpractices taking place at Premier Service Medical Aid Society (PSMAS) and its affiliates,  and has now moved in to restore viability at the country’s largest healthcare provider.

Equally disturbing has also been malpractices of health service providers and suppliers in connivance with PSMAS.

In a statement yesterday, the Government said such malpractices have resulted in the total collapse of service delivery by PSMAS and its affiliates, despite the fact that the Government, which provides over 99 percent of the contributions, has been faithfully paying its contributions for its workers and pensioners.

“A recent forensic audit conducted on PSMAS and its affiliates in the public interest revealed that between 2018 and July 2022, the organisation lost around US$60 million (Z$60 billion circa at the current interbank rate) in contributors funds through theft and mismanagement by the board and management at PSMAS, its affiliates, as well as, from some unscrupulous suppliers and health service providers,” said the statement. 

“In some cases, unscrupulous suppliers and health service providers were engaging in malpractices in connivance with PSMAS board and management and its affiliates. Further analysis showed that had these funds not been misappropriated, PSMAS should have been in a position to provide adequate and satisfactory services as expected by its clients.

“The Second Republic is determined to safeguard the health interest of its workers, pensioners and other contributors as well as the national health system by taking bold steps to stop the rot, corruption and mismanagement at PSMAS and its affiliates and help restore it to viability.”

To this end, the Government is taking a number of steps to bring back PSMAS to viability.

The measures include providing the funds required to pay debts owed by PSMAS and its affiliates,  bringing all suspects to account for their actions, taking all necessary steps to bring constitutionality and good governance back to PSMAS its affiliates, bringing back PSMAS to its core business, and to immediately ensure the reopening of PSMI Health delivery facilities. Government said overall, it will immediately ensure that PSMI and PSMAS are fully functional. 

“It has further come to the attention of the Government of Zimbabwe that the phenomenon that has been observed at PSMAS involving the abuse and misappropriation of contributors’ funds, accompanied by high contributory fees not commensurate to the services being provided is also rife in other Medical Aid Societies operating in Zimbabwe. 

“In this regard, the Government of Zimbabwe, as the regulator, will take decisive measures against these organisations and use all lawful means to bring all culprits to book. All Medical Aid Societies, Health Service providers and Suppliers involved in these malpractices must be brought to account. It is the duty of Government to ensure accountability of all health institutions and to safeguard the health and finances of all its citizens and residents,” said the statement.

The Government assured all citizens and residents of its commitment to run an efficient, effective and reliable health delivery system characterised by honesty, accountability and transparency.

Meanwhile, PSMI national workers’ committee chairperson Mr Munyaradzi Nharaunda said they have reported for duty and implored all card holders to go to their clinics to access services.

Those who got assisted yesterday at the hospital commended the Government for bringing sanity to the health insurance service provider.

“Our hospital is now working. I am very happy and I want to thank Government for intervening and ensuring that the hospital works again,” said Mr Daniel Mutindi.

“It is most unfortunate that you do not get healthcare service when you are contributing medical aid remittances. We are happy that the hospital is working again,” said Ms Esther Mutizwa.

“Now we hope that all other medical aid cards can be regulated to an extent that they stop demanding top-up fees even for consultation and small procedures.”

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