Africa-Press – Uganda. Private health facilities and local manufacturers of healthcare products have asked government to give them incentives to reduce the cost of medical equipment and admissions.
Private health facilities say while they have been under attack for alleged high costs of Covid-19 treatment, government has continued to tax them heavily and expects them to offer cheap healthcare .
Ms Grace Kiwanuka, the executive director of Uganda Healthcare Federation, yesterday said at least 80 per cent of inputs for manufacturing products are imported and that manufacturers are ordered to pay all the import duties.
While a guide on tax incentives/exemptions available to local investors provides for such exemption for imported equipment, those manufacturing locally, but import the raw materials pay taxes on such inputs.
This, officials say, makes them incur huge costs, which they have to shift on the final product.Ms Kiwanuka said government has to rethink and provide tax and other incentives to such manufacturers so that medical supplies and equipment are cheaper.
“With 80 per cent of our inputs imported, there is a huge opportunity to incentivise local manufacturing in healthcare. It’s the only, way even with the national health insurance that we can keep costs down,” Ms Kiwanuka said.
She also reiterated their earlier demand that a medical credit facility, similar to agricultural credit facility be established so that health facilities can access cheaper loans.
Ms Kiwanuka said the current arrangements under Uganda Development Bank has failed the private health facilities.“We need to establish the Medical Credit Scheme so that private sector has an opportunity to actualise this. Without affordable financing tailored to health the way the Agricultural Credit Facility is tailored to agriculture we will not get the momentum we need to turn this sector around,” she said.
She said while both the ruling NRM party manifesto and the Ministry of Health have prioritised the health of Ugandans, it has remained on the paper.
“The biggest joke is that this was in the last NRM manifesto. It’s also in the last health sector development plan. Will they do it now.
“They keep saying go to UDB (Uganda Development Bank), yes they are at 12 per cent interest but the mechanism does not understand private health sector. They are for collateral terms that are not reflective of private sector, like asking for a land title. How many private facilities own the building they are in?” Ms Kiwanuka wondered.
She said the Movable Property Act 2019 provides for use of medical assets as collateral, but UDB has refused to recognise that and they still demand for land titles and yet many of the private health facilities operate in rented spaces.
Ms Kiwanuka said many health facilities need smaller amounts of loans, but UDB sets its minimum amount at Shs100 million, which many of the facilities cannot afford.
Officials from private health facilities and Ministry of Health recently agreed to reduce the costs, but only on conditions that government also commit to waiving taxes on medical supplies and other inputs.
