NHIF loses bid to stop Meridian compensation case

The National Hospital Insurance Fund has lost a bid to stop a medical provider’s quest for over Sh600 million in compensation.

In a ruling delivered by High Court judge Jacqueline Kamau, Meridian Medical Centre’s Langat Kerich, Marwa Fadhili Chacha, David Kipruto Chingi, Peter Wambugu and Ndiba Wairioko’s criminal trial proceedings as well as the compensation suit will proceed separately.

Whilst dismissing the Fund’s application that sought the higher court’s case be halted until the trial is completed, the judge said that matters in both courts were similar hence there was no need to waste time over which trial should be using to make its findings.

The judge said that there was no satisfactory reason to warrant orders because it would give a clear indication of preventing the ends of justice from taking its own course.

“This matter has since been certified as ready for hearing and indeed a hearing date taken but it did not proceed, it is time the trial goes on and be determined on its own merits, without fear of the outcome’s impact on this case or vice versa,” she said.

Meridian got into a contract with NHIF on November 8, 2009 for providing outpatient medical care and treatment services to the funds’ beneficiaries under a pilot project in which several clinics had been gazetted.

And on January 1, 2012, the two signed a contract for providing primary healthcare and treatment facilities to all civil servants and members of the disciplined services.

But Meridian was alleged to have been setting up and equipping clinics during this period, contrary to what it had presented.

It is then that NHIF became aware of this anomaly, terminated the said contract on June 14, 2013 after giving three month's notice to Meridian and the officials were then charged before an anti-corruption court.

DISMISSED THE APPLICATION

While the officials moved to the High Court claiming breach of contract and seeking over Sh 600 million, NHIF filed an application to stop the case from going on until the trial is completed.

According to NHIF, the anti-corruption case is aimed at finding out whether there was a conspiracy to defraud the Fund and the basis of the termination of the contract because the witnesses set to testify in both cases were the same.

However, Meridian claimed that the two suits were different and wanted the application dismissed.

The judge said that there was no way the trial would be stopped because of the High Court’s case or the latter be halted to await the outcome of the former and dismissed the application with costs to Meridian.

The five Meridian officials had been charged with conspiring to defraud NHIF of Sh116 million and were released on Sh 2million bail.