Counties
Kisumu County leases hospital to private company
Monday, May 30, 2022
Kisumu Governor Anyang’ Nyong’o at a past event. FILE PHOTO | NMG
A private investor has taken over the management of Victoria Annex Hospital in Kisumu with the aim of revitalizing the performance of the sub-county facility.
Oasis Doctors Plaza won the tender to operate the hospital which was an annex of the Jaramogi Oginga Odinga Teaching and Referral Hospital (JOOTRH).
The medical institution which has 18 branches across the country will lead the project for a renewable period of five years.
Kisumu County is leasing the facility under a revenue sharing scheme which is expected to generate up to 45 million shillings for the county administration over the life of the contract.
Oasis said it will make a capital investment of 236 million shillings in the plan, which will be executed in two phases.
“The first phase will entail renovations, reorganization of offices and purchase of basic equipment with an expected cost of 50 million shillings from June 2022,” the company said in documents seen by the business daily.
The second phase will involve the establishment of a comprehensive radiology center with MRI and CT-Scan, specialist units including a cancer center and an intensive care unit at a cost of 186 million shillings.
The decentralized unit aims to optimize service delivery in the facility by improving quality, raising the profile of specialist services, increasing diagnostic imaging, and raising funds for social welfare. Victoria Sub-County Hospital operates as an annex of JOOTRH.
However, the county noted that the approach has failed largely due to the proliferation of private hospitals in the area and policies that prohibit part-time private practice by clinicians at public facilities.
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