Parents risk losing homes as Aga Khan pursues Sh21m medical debt

Court gavel. [Courtesy] A high-end hospital in Nairobi County is seeking the court's green light to sell two properties owned by the parents of a 30-year-old patient, which they used to secure his release in a Sh21 million medical bill. The Aga Khan University Hospital, in its case filed before the Commercial Court in Nairobi, alleged that the father, codenamed SOB and his wife JMO and another guarantor, codenamed KEN had guaranteed to pay the amount from 2019 when the patient, codenamed JOO, was discharged. Nevertheless, the hospital's lawyer Brian Asin alleged that from when JOO was discharged on or about June 20, 2019, the bill has not been settled to date. "At the material times relevant to this suit, the plaintiff offered certain medical services to JOO whom the first, second and third defendants guaranteed payment of his bill accumulated during his stay at the hospital to the tune of Sh21 million through guarantee of payment dated June 20, 2019," claimed Asin. From the documents filed in court, JOO was at the hospital's High Dependency Unit (HDU). In one document, it was indicated that he was insured by the UAP Insurance, but the maximum limit was Sh898,000. "Briefed him on charges which can go up to Sh2 million. Fully aware and promised to make payments by Wednesday," the document dated February 16, 2019, read in part. In the guarantee, SOB and JMO offered their title as security. In addition, documents before the court show they committed to authorize the hospital and their employer to deduct the full amount if they did not clear the amount within the agreed timelines. "Failing to which the Aga Khan University, Nairobi may take legal action if necessary to protect its interest. Any costs incurred by the Hospital in the above process will be payable by me or us in the sum outstanding," the agreement read. At the time he was being discharged, JOO's bill was Sh24.5 million. From the amount, the now-defunct National Health Insurance Fund (NHIF) paid Sh512,000. A day before, there was a deposit of Sh200,000. The remaining amount then was Sh23.6 million. Aga Khan claimed that it had incurred a loss of Sh21.6 million since 2019, to date. It indicated that it had informed the guarantors about its intention to move to court, but they did not honour their end of the bargain. The hospital now wants the court to find that the two parents and the separate guarantor are jointly indebted to the tune of Sh21.6 million. It is also seeking interest rates from 2019 until the amount is paid in full. On the other hand, it is seeking court's nod to sell the two properties it has been holding onto as security. In the meantime, the private facility is also demanding the cost of the case. In its demand to JOO's parents, Aga Khan's lawyer accused them of cutting communication with the hospital. Asin demanded that they must pay the full amount within seven days or else the hospital would move to court and sell the securities. "You have ceased communication with our client in respect of nay settlement thus prompting our demand and you are required to compound for the said sums to the Aga Khan University Hospital to their satisfaction of the outstanding liabilities," the demand dated May 8 this year read.

Parents risk losing homes as Aga Khan pursues Sh21m medical debt

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Parents risk losing homes as Aga Khan pursues Sh21m medical debt

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