The Rift Valley Provincial General Hospital is demanding Sh211 million from the National Hospital Insurance Fund (NHIF) for patients treated at the facility.
The hospital's chief executive, Joseph Mburu, said the debt has accumulated for more than a year.
"NHIF has not remitted money for patients who received medicare at the facilities," said Dr Mburu, adding that failure to remit funds affects the general operation of the hospital that serves about 2,000 patients daily and has a bed capacity of 800.
Mburu added that at times the institution isolates patients seeking maternity services on a Linda Mama card on claims that the services are not listed under the insurer.
However, county NHIF representative, Rebecca Akumu, said the fund was in talks with the hospital.
"We agreed they need to do a reconciliation of the figures and then the payments would be done," she said.