Tanzania: NHIF to Invest in Medical Products

 

The National Health Insurance Fund (NHIF) is considering ways of increasing its revenue by investing in manufacturing health-related products.

The decision to invest protruded from the fact that the sustainability of the fund depends also on venturing outside the membership contributions.

Thus, NHIF Managing Director Bernard Konga said currently, they are conducting a thorough feasibility study to determine the suitable areas of investment but all will be for medicines and medical-related equipment.

"The studies will lead us on where to invest suitably to sustain our operations," Mr Konga said, "but the investment will be in the area we know best-health,"

The money from investment proceeds will also enable the fund to widen its health coverage spectrum by offering more specialised services among others.

"As the NHIF turns 20, everyone is in agreement that it needs more money to serve the need," Mr Konga said in Dodoma during the fund and editors meeting.

The million-dollar question is how to generate that money without jeopardising the fund's wellbeing.

The NHIF chief said the area of investing will be in the area where they will realise returns in a short period due to the nature of the health covers.

"We are considering diversifying our portfolio by venturing into short liabilities projects such as producing drip waters and the like," Mr Konga said.

NHIF Director was reacting to Tanzania Editors Forum (TEF) Chairman Mr Deodatus Balile advice that the fund should look into ways of increasing revenue using other sources.

Mr Balile said in Dodoma last weekend it was high time for the fund to increase revenue using other sources than members' contributions to enable offering more services and become sustainable.

The NHIF collects membership contributions and in turn pays hospitals, physicians, health maintenance organisations (HMOs), and other health care providers.

In the last 20 years, NHIF bill to the service providers have increased from 247m/- in 2001 to 514bn/- in 2020/21 and is still growing as members penetration reaches 8.0 per cent from 2.0 per cent when started.

Globally, South Korea has the best health care systems in the world, that's according to the 2021 edition of the CEOWORLD magazine Health Care Index, which ranks 89 countries according to factors that contribute to overall health.

Two additional Asian nations were among the top 10 in 2021: Taiwan (second place) and Japan (fifth). As for European countries, they occupy six of the top ten spots in this year's ranking: Denmark (3rd place) Austria (4th place), France (7th), Spain (8th), Belgium (9th), and the United Kingdom 10th place.

In Africa, South Africa has the best Medicare system ranked at 53rd position while Kenya ranks on 70th position.