[Update: Feb 25: A review by Kenya Medical Practitioners and Dentist Council, the doctors’ union, found that rates themselves charged for services were permissible but verified that a What’s App group was being used to allow managers to have direct input into medical decisions such as discharges warranting better procedures. The Star has taken down a story –which I linked–that seems to have a reflected a PR spin on the report which was itself then leaked on Twitter. So the saga continues.]
Update: Feb. 12, Jaindi Kisero column in Daily Nation recommends, “To ward off greedy investors, fund locals to put up private hospitals“.
Back in 2019 a private equity group from Ft. Worth, Texas and San Francisco, TPG, took over the Abraaj Growth Markets Health Fund from its interim manager Alix Partners, the U.S.- based restructuring/insolvency advisors. The Abraaj funds, run out of Dubai by original Pakistani investors, had been apparently fraudulently tapped by management, thus the restructuring under the auspices of a Limited Partner Advisory Committee, which hired Alix.
The Limited Partners included global healthcare giants Phillips and Medtronic, multilateral development lenders including the IFC as well as bilateral development finance agencies such as the US Government’s OPIC, the CDC and Proparco. Likewise the Bill & Melinda Gates Foundation invested.
TPG renamed the Abraaj Growth Markets Health Fund as the Evercare Health Fund, to be managed by TPG Growth. At the time of the TPG announcement, Evercare was identified as having a “portfolio which includes 26 hospitals, 18 clinics, 40 diagnostics centres and 2 brownfield and greenfield assets” in Africa and Asia. One of the asset groups in the newly renamed Health Fund was a Kenya for profit group of small hospitals called Nairobi Women’s.
Triggered by an explosive series by prominent Nairobi blogger Owaahh, “Have you ever been to a private hospital“, scrutiny has come down on the group for profiteering behavior toward patients without medical basis. Insurers pulled back and now the Fund has announced an interim management change with the entrepreneur/doctor who built and ran group stepping aside in favor of a three member team of Evercare representatives pending professional reviews.