HARARE – The Premier Service Medical Investments (PSMI) has closed down West End Hospital in Harare and Claybank Hospital in Gweru after failing to pay staff, including nurses and doctors, for three months.

In a notice on Friday, PSMI blamed the crisis on “cash flow ceilings currently affecting the major client, Premier Service Medical Aid Society (PSMAS).”

PSMAS, which was formed by civil servants, runs a medical insurance scheme for government workers. PSMI is PSMAS’ investment arm.

The scheme has been on the verge of collapse for years due to low premium contributions by members, and the government’s refusal to raise its own contribution.

The PSMI board said in a statement that it “acknowledges the fact that employees have gone for three months without salaries, and how the unfortunate circumstances continue to affect the employees’ wellbeing and their capacity to report for work and effectively discharge their duties.”

It said it was working with the government and PSMAS “to address the cash flow challenges given their continued adverse effects on PSMI operations, staff welfare as well as civil servants’ ability to conveniently access quality healthcare services, as was the case before.”

PSMI has been charging members “shortfalls” before they receive treatment. It said these charges kept the medical insurance afloat as the money was used to “fund day-to-day business continuity requirements pending capacitation.”

It added: “Shortfalls had also been adopted in efforts to close the gap between the cost of service delivery and the obtaining medical aid tariffs which are unsustainable under the current hyperinflationary environment.

“However, the issue of shortfalls has since been overtaken by events following a board resolution to remove the shortfalls for all services effective October 1, 2022, except in circumstances where a member would have exhausted their benefits.”

-Online