16 C
Harare
Thursday, December 8, 2022
spot_img

Government extends ZW$4billion bailout to PSMAS & PSMI

By ZBC Reporter

Government has this Tuesday extended a bail-out package of more than ZW$4 billion to Premier Service Medical Aid Society (PSMAS) to help restore operational viability at the medical insurance group.

In a statement, the Secretary to the Service Commissions, Dr Rosemary Tsitsi Choruma said the financial support is expected to help clear third-party arrears, which had suffocated operations at the medical aid society.

“The bail-out package is intended to resuscitate operations at the society and support PSMI, some of whose medical facilities had closed in recent weeks. The injection of funds will enable the restoration of operations at the embattled medical insurance group through, among other support, the clearance of salary arrears for PSMI staff,” she said.

Dr Choruma said the development is expected to enable the re-opening of PSMAS health care facilities across the country which had closed in recent weeks.
“Also contained in the bail-out package is support towards the clearing of third-party arrears, which had suffocated operations at the medical aid society. This development is expected to enable the re-opening of PSMI health care facilities across the country and restore operational viability.

Civil servants who subscribe to PSMAS are expected to be able to access healthcare services from the society’s clinics timeously, highlighted Dr Choruma.

She added that the bail-out package is a clear demonstration of government’s commitment to provision of health care services to public servants, who make up 90 percent of PSMAS clients.
“This is a clear demonstration of Government’s commitment to the provision of access to health care for public servants, who make up 90 percent of PSMAS clients,” she noted.

Dr Choruma highlighted that government support to PSMAS, which began when challenges started at the organisation earlier in the year, is expected to continue until full normalcy is restored at the medical aid society.

The bail-out package is part of broader support by Government which began since challenges started at the organisation earlier in the year and is expected to continue until full normalcy is restored.

The latest injection of funds to PSMAS follows prior support by Government to the tune of ZW$999 million monthly, 60% of which had been intended for liquidation of financial obligations to creditors, PSMI included; while 40% had been for channelling towards PSMAS operations.

Furthermore, government provided more than US$1 million towards the purchase of drugs.

A forensic audit at both PSMAS and PSMI is still in progress, which when finalised will inform how further governance matters will be dealt with.

Related Articles

Stay Connected

0FansLike
3,600FollowersFollow
0SubscribersSubscribe
- Advertisement -spot_img

Latest Articles