PSMI closes hospitals

Premier Service Medical Investments (PSMI) has closed down two of its flagship hospitals, Claybank (Gweru)  and West End (Harare) after nurses went on strike over unpaid salaries.

In a statement, the PSMI Board said, “The board acknowledges the fact that employees have gone for 3 months without salaries and how the unfortunate circumstances continue to affect the employees’ wellbeing and their capacity to report for work and effectively discharge their duties. The challenges at PSMI have been in the public domain for the better part of the year and they mainly emanate from cash flow ceilings currently affecting the major client PSMAS.”

The health care provider which is wholly owned by the government justified charging shortfalls saying it was a short-term measure and the board had resolved to scrap them on 1 October 2022.

“With regard to charging shortfalls, the intervention had been adopted as a short-term measure to mitigate the effects of the inadequate cash flows pending adequate capacitation of PSMI operations. Furthermore, shortfall collections were also being utilized to fund day-to-day business continuity requirements pending capacitation.”

As the national health delivery system continues to crumble, the same trend of mismanagement is beginning to show in the government-owned private healthcare services provider. The hospital is not only struggling to pay the nurses but is also failing to purchase other essentials. The government has had to intervene.

“PSMI pharmacies, renal clinics, optometry practices and clinical laboratories have since received part of the imported stocks to address the perennial stock-out challenges that were affecting service delivery. Through Government efforts, PSMI is also currently working with NATPHARM in ensuring consistent availability of affordable medicines to the convenience of the PSMAS members and the nation at large.”