…limits services as it struggles to pay staff and buy medicines
Mathatisi Sebusi
PARAY Mission Hospital is drowning in a debt of close to M12 million, a crisis that has forced it to suspend several critical services, particularly outpatient (OPD) treatments, as it struggles to pay staff and purchase essential medicines.
Located in Thaba-Tseka, Paray is one of the Christian Health Association of Lesotho (CHAL)’s major hospitals.
It suspended services alongside St Joseph’s Hospital and Seboche Hospital, which both also belong to CHAL, due to severe shortages in operational resources.
The full extent of Paray hospital’s financial collapse was revealed this week when the parliamentary Social Cluster Committee visited the facility to assess the situation and explore possible interventions.
The hospital’s Senior Accountant, Thato Lecheba, disclosed that Paray owes M11 947 000, against a monthly government subvention of M2 250 203. Due to the financial strain, the hospital is currently limited to providing HIV, TB, counselling and antenatal services at the OPD.
“This debt comprises M8 710 000 owed to the Revenue Services Lesotho (RSL), M900 000 owed to a filling station, and M1 157 000 owed to the National Drug Service Organisation. M840 000 is for severance pay, and M340 000 is for other utilities,” Mr Lecheba said.
He also said the government owed the hospital two months’ worth of subvention, amounting to around M4.5 million.
Explaining the hospital’s expenditure, Mr Lecheba said that although the hospital receives M2 250 203 monthly, it spends M3 082 252 every month, excluding the 5% pension contribution.
“Total monthly gross salaries cost M2 100 000; pensions at 5% plus administrative fees cost M105 000; mountain allowances cost M122 250; drugs and medical supplies M250 891; petrol and oil M142 397; heating expenses M68 770; utilities M164 374; printing and stationery M85 670; and motor vehicle maintenance and repairs M42 900,” he said.
Shocked by the revelation, the Chairperson of the Social Cluster, Mokhothu Makhalanyane, asked the hospital staff to clarify how such a huge debt had been allowed to accumulate.
Hospital Administrator, Sister Clara Rakhomo, said the government had been issuing the same amount of subvention since 2020 despite rising costs and increased salaries.
She explained that the debt began accumulating in 2023, and the hospital even approached RSL to report its financial struggles.
“We informed RSL that we were struggling to pay this debt. It was either we pay RSL or buy drugs. If we paid RSL, we wouldn’t have been able to buy any drugs and medical supplies. We are working hard to pay this debt. We even made a payment plan, even though we do not know where we are going to get the money,” said Sr Rakhomo.
However, she said they were unsure whether RSL would approve the payment plan.
Sr Rakhomo further noted that despite suspending some services, the situation has not improved and the government has still not yet paid the outstanding subvention.
“We got a communication that CHAL and the Prime Minister had a meeting and an MoU was signed. Workers were even threatening to down tools on Monday, but with assistance from the district administrator, who negotiated with them, that has not happened.”
In response, Mr Makhalanyane advised the hospital to write a justification explaining why it should be bailed out by the government because even if it receives the awaited subvention, Paray would still remain in red.
“This will be an interim solution while waiting for the government and CHAL to review the Memorandum of Understanding regarding their partnership. Even if the government were to pay you the subvention it owes, that will not solve your financial problems.”
He stressed that the current MoU does not address the hospital’s challenges or meet its needs.
“The MoU does not respond to the needs of this hospital. The numbers remain the same, and the hospital has been struggling to pay for drugs for a long time,” Mr Makhalanyane said.
Paray, along with two other CHAL hospitals, has failed to pay staffers for two months, triggering a go-slow action by workers last week, which then forced hospitals to limit operations.
Meanwhile, CHAL and the Ministry of Health have assured hospitals that a solution is underway.
On Friday, CHAL informed its facilities that the government had committed to providing funds for the purchase of medicines and pay outstanding salaries.
“I am pleased to inform you that the meeting between CHAL proprietors and the Right Honourable Prime Minister was held successfully. An MoU has been signed by both parties. This is the previously existing MoU, now extended through an addendum to guide our continued collaboration.
“It has come to our attention that in some facilities, staff have begun a go-slow due to the two months’ salaries that remain unpaid. Please be assured that the government has pledged that the required funds will be deposited into the facilities’ accounts during the coming week,” CHAL said in a communication to its members.
The Ministry of Health also confirmed that an agreement had been reached with CHAL, allowing the organisation to receive funds for salaries and medicines while broader negotiations to establish a sustainable, long-term solution continue.
Speaking to the Lesotho Times sister paper, the Sunday Express, last week, Principal Secretary in the Ministry of Health, Maneo Ntene, said the challenges arose because the contract between the government and CHAL needed to be reviewed.
“The contract needs to be reviewed, and we realised that both parties needed time on their side. We have agreed that between now and April, we will work under a contract to ensure that healthcare service delivery is not affected while the review is underway. The existing contract was made without considering future implications,” Ms Ntene said.
