First Mutual RTGS Medical Aid holders stranded

ZIMBABWEAN Dollar Medical Aid holders under First Mutual Health insurance scheme will no longer be able to access healthcare services at any of the health facilities under the Medical Investments limited including the Avenues Clinic, a move that is likely to throw members into quandary.

By Michael Gwarisa

Sources privy to these developments told this publication that First Mutual Health (FMH) has not been forthcoming in terms of meeting their side of the bargain and have been paying for claims after a longer period in contradiction with a request from the Avenues Clinic which directed all funders to adopt a pre-funding model in order to mitigate the negative impact of the prevailing inflationary environment.

Following First Mutual’s failure to pay for services, the Avenues Clinic and all facilities under the medical investment ltd temporarily suspended the First Mutual Zimbabwean Dollar account on Thursday, 19 May 2022.

Mr Tinashe Chingonzo, the First Mutual Acting Managing Director wrote to all members under their Zimbabwean dollar informing them that they would no longer be able to get services from The Avenues Clinic.

First Mutual wishes to advise members that we are in the process of re-negotiating our service contract with The Venues Clinic to address challenges brought about by the current economic environment. While these negotiations are underway, our service arrangements with the Avenues Clinic have temporarily been suspended for members paying contributions in ZWL and the hospital will not be providing services to our ZWL members for the time being,said Mr Chingonzo in a circular.

The suspension however comes despite indications that some members had already booked for services with the facility.

Speaking to HealthTimes in an interview, The Avenues Clinic Corporate Affairs Officer, Cordelia Shereni said the situation was beyond their control and they had no other option but to temporarily suspended services to First Mutual Zimbabwean dollar members.

“We have not managed to agree with FMH on a commitment to the pre-funding model. Any of the FMH members who will be seeking services from any of the Medical Investment Limited units will be required to pay cash up front and be provided with receipts and claim forms for submission and reimbursement.

“This is an unfortunate position which has been occasioned by adverse market forces. The volatility of the currency situation requires us to put necessary measures in place to ensure sustainability,” said Cordelia.

The country’s medical aid sector is currently under siege owing to volatility of the currency. A number of private health facilities are no longer accepting the Zimbabwean dollar as a mode of payment despite the fact that majority of citizens earn their salaries in local currency.

 

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