TOP
  • Home
  • Business
  • Banks’ mentality holding back funding to private health care

Banks’ mentality holding back funding to private health care

By Vision Reporter

Added 30th January 2014 11:26 AM

The conservativeness of commercial banks in lending to private health facilities is hurting the prospects of better health care in Uganda, an expert has revealed.As a result, many private health facilities struggle to buy new equipment, train their staff further, hence compromising the state of hea

2014 1largeimg230 jan 2014 083146227 703x422

The conservativeness of commercial banks in lending to private health facilities is hurting the prospects of better health care in Uganda, an expert has revealed.As a result, many private health facilities struggle to buy new equipment, train their staff further, hence compromising the state of hea

By Billy Rwothungeyo

The conservativeness of commercial banks in lending to private health facilities is hurting the prospects of better health care in Uganda, an expert has revealed.

“Because of the misunderstanding of the private health sector, and the perception of low business acumen of those working in the sector, banks perceive the risk of lending money to the sector to be so high,” Dr. Dithan Kiragga, the chief party of USAID/Private Health Care Programme has said.

As a result, many private health facilities struggle to buy new equipment, train their staff further, hence compromising the state of health care.

Kiragga made the observations at the launch of a seven year joint loan agreement between SIDA, USAID Uganda and Ecobank.

The deal will provide credit to Ugandan private health facilities. It targets pharmaceutical wholesalers, retail dispensaries, service delivery franchises, private clinics and hospitals.

However, Kiragga notes that these facilities do not make matters any better for themselves with laxities in their systems.

“They do not invest in other aspects of their business. On the financial aspects, their records are wanting. They could be making losses in certain areas and they cannot appreciate them because they are only concentrating on their patients. Without proper financial records, it becomes hard for the banks to listen to you,” he said.

Banks’ mentality holding back funding to private health care

More From The Author

Related articles