Summary: Different agencies of government within the FCT have descended on private hospitals in the FCT with duplicitous multitude of crippling taxes. The government through its agencies is making life difficult for health care practitioners and will ultimately force many to close. This will have a devastating effect on health care delivery in the FCT as private hospitals currently treat up to 70% of patients requiring health care.
Information: Over the years there has been multiple forms of fees and taxes (some illegal and unnecessary) charged to private health facilities. It seems that government and its agencies do not realise the vital importance of private hospitals to meeting the health care needs of Abuja residents. Private hospitals run under very small margins so once their revenues are consumed by unnecessary government taxes, it affects their standard of care and survival.
These health establishments are being taxed to death by various agencies within the FCT in a manner that is guaranteed to force many out of business.
The danger of this to the community is that it will not only further deplete the medical workforce but also diminish quality access to health care services. It is pertinent to emphasize the distinction between a purely commercial entity and the fact that private health facilities render an essential social service.
Private hospitals are not a money-making machine and should not be seen as cash cows by the government.
Nigerians patronize private health facilities because of the fact that public medical institutions do not offer them the services they require. In particular in the FCT, private health facilities deliver care to over 70% of the residents. It simply means people will be on the receiving end with delay and poor accessibility to health care.
The cost and availability of quality health care is being endangered by severe and unnecessary taxes.
Of about 20 different taxes levied on private hospitals, only tenement rates apply. Yet, agents of the different government agencies go about threatening doctors with prosecution and closure.
Taxes such as advertisement rates, private hospital monitoring fees, environmental inspection, Radio and Television charge and a host of others are killing many hospitals and must be reviewed urgently.
Action: The GMD is taking several measures towards addressing these issues. One of such measures is consultation with public officials, statutory responsible for public policy and legislation.
In addition, GMD is seeking a judicial review of some of these overwhelmingly burdensome charges. The organization is in court against some of the local government councils in the FCT.
We will not hesitate to go to the Supreme Court to fight for our rights and the rights of Nigerians to equitable and affordable health care.
Beyond this the GMD is also poised to create awareness especially among the populace who are on the receiving end of the consequences of these actions. With the above measures, we hope we can achieve our main goals to provide the right environment for private health facilities to provide quality and affordable care to our community.
We will enlist the Press to help sensitize the general public on the dangers inherent in crippling taxes levied on private hospitals in the FCT
The Guild of Medical Directors (GMD) is a platform and serves as an advocacy group protecting the interest of private medical concerns. One of our main objectives is to facilitate raising the quality of medical care offered by these establishments to globally accepted standards. To achieve these, we have to help create a level playing field for operations.
Contact: Further information from Dr Chito Nwana: Chairman of the Guild of Medical Directors, FCT, Abuja. Telephone: 07046832192
