Govt Orders PSMAS to Split from Business Arm in Major Health Sector Overhaul

 

 

The Ministry of Health and Child Care has announced plans to separate the Premier Service Medical Aid Society from its business arm, Premier Service Medical Investments, in a bid to restore efficiency and ensure members receive timely medical services across the country.

Responding to questions in Parliament on Wednesday, Deputy Minister of Health and Child Care Sleiman Kwidini acknowledged that PSMAS members, mostly civil servants, have been facing serious challenges accessing healthcare. 

He said many hospitals and pharmacies were either rejecting the medical aid or demanding hefty top-up fees despite regular monthly contributions.

Legislators raised concerns over deteriorating service delivery within PSMAS facilities, saying patients were being forced to pay nearly the same amounts as those without medical aid.

In response, Deputy Minister Kwidini said the government had resolved that medical aid societies should strictly function as insurance entities, not as service providers. He explained that PSMAS’ creation of business units such as PSMI had created conflicts of interest and inefficiencies that left members stranded.

“The government plans to ensure that medical aid societies or medical insurances such as PSMAS and CIMAS do not provide medical services if they are in the insurance business,” Kwidini said.

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“PSMAS should stand alone and pay all service providers directly when clients are ill, instead of directing funds to its own units like PSMI.”

The Deputy Minister said the current model had led to financial mismanagement within the society, as money meant to pay hospitals and pharmacies was being channelled internally to sustain struggling PSMI facilities.

Kwidini revealed that the government will, in the coming week, convene meetings with key stakeholders to finalise the separation of PSMAS and PSMI, creating two independent entities — one focusing solely on medical insurance and the other on healthcare provision.

“We are now saying every PSMAS member should go to a doctor or hospital of their choice anywhere in the country. This change will ensure that PSMAS pays all service providers fairly and that patients are not restricted to PSMI facilities,” he said.

He added that the move would open up access for civil servants to a wider network of healthcare providers, improving service quality and ending the monopoly previously enjoyed by PSMI.

Kwidini also assured Parliament that once the separation is complete, PSMAS will be in a better position to settle outstanding debts with service providers. 

He said patients with chronic illnesses would once again be able to access drugs and consultations without the financial strain of top-up payments.

 

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