The University of Benin Teaching Hospital (UBTH) is currently grappling with over N800 million in unpaid debts from Health Maintenance Organizations (HMOs) and corporate clients, according to the outgoing Chief Medical Director, Prof. Darlington Obaseki.

Prof. Obaseki made this revelation during a media chat with journalists in Benin City after a tour of facilities, marking the end of his tenure as the hospital's Chief Medical Director.

"Health Maintenance Organizations are owing us almost N500 million, corporate clients another about N300 million. The debts owing the hospital is huge," he disclosed.

The CMD emphasized that these outstanding payments, which are for healthcare services rendered to individuals from the respective organizations, are separate from debts owed by individual patients.

Financial Challenges in Healthcare Delivery

Prof. Obaseki dismissed notions that healthcare costs at UBTH are expensive, explaining that the hospital management does everything possible to recover costs to ensure continuity of services for future patients.

He revealed that the Federal Government provides no additional funding to the hospital beyond staff salaries and capital projects, leaving the institution to operate at a significant financial deficit.

"UBTH is subsidizing the services of patients heavily. The Federal government doesn't always bring money for the running of the hospital except for the payment of monthly salaries and capital projects. No subsidy is coming from anywhere. We are running at a high cost," he stated.

To address these financial challenges, the hospital introduced a premium funding system for wealthier patients. This innovative approach allows the hospital to charge higher rates to affluent patients, comparable to private hospital fees, with the additional revenue helping to subsidize care for other patients.

"We introduced premium funds for those that are well endowed and have more money. Instead of them going to a private hospital which we believe that the quality of care they get there is not as much of what they get in UBTH to come to the hospital and pay the same amount they would have paid in the private hospital," Prof. Obaseki explained.

Regional Medical Hub

Despite the financial constraints, UBTH continues to serve as a major referral center for complex medical cases across Nigeria. Prof. Obaseki revealed that in July alone, the hospital received 140 referrals from various states including Abuja, Anambra, Lagos, Kogi, Delta, Bayelsa, and Ondo.

He also noted that many of the best private hospitals within Edo State regularly refer patients to UBTH, highlighting the institution's reputation for quality healthcare delivery.

The outgoing CMD called for cooperation and support from all stakeholders to enable the hospital to continue delivering accessible and quality healthcare services to the public.

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