PSMI receives subsidy to reopen hospitals

Johnsias Mutonhori

MEDICAL facilities under the Premier Service Medical Investment (PSMI) are set to reopen after Government injected a subsidy of $4 billion meant to revitalise operations of the premises closed due to liquidity challenges.

Among the facilities that have reopened is Claybank Hospital in Gweru. PSMI spokesperson Mr Obey Nhakura confirmed the development saying the organisation received a $4 billion bail-out from the Government. He said they were happy that following the bail-out, almost all workers were now back at work.

“I am happy that Claybank Hospital staff are now back at work and ready to assist patients. We are still assessing the situation at West End to see if all the doctors will return to work by the end of the week. But basically, everything is going back to normal at the hospitals,” said Mr Nhakura.

Claybank and West End Hospitals in Gweru and Harare are subsidiaries of PSMI and were closed last month together with other 120 units leaving only 35 facilities functional. In a statement released last week, the Secretary to the Public Service Commission, Mrs Rosemary Tsitsi Choruma said the intervention by Government was meant to rejuvenate the struggling medical care facility.

“Government wishes to inform all stakeholders of a bailout package which was extended to Premier Service Medical Investment (PSMI) to the tune of $4 258 518. 459.18. The bailout package is intended to resuscitate operations at the society and support PSMI, some of whose medical facilities had closed in recent weeks,” reads part of the statement.

Mrs Choruma said the Government funds would help to restore the operations at the embattled medical insurance company, clear salary arrears as well as clearing third party arrears which had suffocated its operations.

“The Government will continue supporting the health service group until normalcy is fully restored,” she said.
Earlier this year, the Government started to support the public service medical facility with $999 million per month, with 60 percent intended for insolvency of financial obligations to creditors, while 49 percent was channelled towards PSMAS operations.

To restore normalcy and confidence the Government in July dissolved the PSMAS board while some executives were arrested and arraigned before the courts for financial impropriety.

In Gweru, Claybank Hospital had become the preferred medical service provider enjoying subscriptions from big mining companies in the Midlands Province such as Unki Mines, Mimosa Mine, ZIMASCO as well as other local companies and of institutions of higher learning.