Healthcare Providers Claim 20% of Nigeria’s Private Hospitals Shut Down on Crippling Operating Costs

About 20 percent of Nigeria’s small and medium-sized private hospitals have shut down due to crippling operating costs that have boxed owners in a struggle to keep the lights on.

Most healthcare providers in this category could no longer cover the bare minimum expenses required to stay operational, such as rent, utilities like electricity, payroll for essential staff, and basic medical supplies.

This is according to Adeyeye Arigbabuwo, the national chairman, Health Care Providers Association of Nigeria Committee on NHIA Matters.

As of mid-2021, there were 40,368 hospitals and clinics in operation in Nigeria, split between 10,900 private facilities and 29,468 public facilities, according to data from the Federal Ministry of Health.

However, about 70 percent of healthcare services are discharged by private hospitals, while government hospitals cover about 30 percent, according to private stakeholders.

The unpredictable cost of medical supplies, driven by the impact of unstable foreign exchange rates on importation costs, has made it very difficult for hospitals to keep patients’ bills stable.

The challenge is worsened by high inflation, spiking electricity bills, expensive backup power, and the shortage of clinical staff including nurses and doctors leaving.

The Nigerian Electricity Regulatory Commission (NERC) this month raised electricity tariffs by about 300 percent leading to increased burdens fr these hospitals.