Contract with UniBank hurting our revenue collection – Korle Bu
Korle Bu Teaching Hospital management’s decision to rescind the termination of the contract it had with UniBank for onsite banking services has essentially compromised the hospital’s revenue collection.
The issue to do with the contract with UniBank, is tied to corruption allegations made by Kwame Asare Obeng, also known as A-Plus, against two presidential staffers, Francis Asenso-Boakye and Abu Jinapor.
A-Plus’ allegations had to do with a petition by Unibank Ghana Limited to the effect that the management of Korle-Bu had abrogated an existing MoU with them without any reason, thus treating them unfairly.
A-Plus held that the two presidential staffers played a role in the matter, but his allegations were later deemed to be baseless.
In a statement to “clarify distortions carried in sections of the media in respect of the onsite banking services,” the hospital’s management revealed that, “events thereafter [the abrogation] have made Management to rescind the decision to terminate the contract with UniBank.”
“So Korle Bu is currently in a stalemate where it continues to lose all the benefits of the End-to-End Hospital Revenue Collection Software,” the hospital’s management conceded,” the statement added.
The software was intended to plug revenue leaks at the hospital.
Background
The onsite banking services were needed to deal with the “chronic revenue leakages bedeviling the Hospital” which a number of banks had been unable to solve since 2008.
Government directed that all public institutions should cede the collection of their revenue to selected banks.
In 2015, six banks were shortlisted to undergo a competitive selection process where Stanbic Bank emerged first and UniBank was fourth, the statement recounted, and “a decision was taken to select Stanbic Bank that was first and UniBank that was 4th to partition the collection of revenue in the hospital.”
But when the hospital submitted the names of the two banks to the Controller and Accountant General’s Department for approval, issues were raised about weaknesses in UniBank’s operations in two other hospitals.
The issues had to do with “reconciliation challenges, delays, non-provision of real-time access to relevant stakeholders.”
“In spite of the advice of the Controller and Accountant General’s Department, an MoU was signed, appointing UniBank to simultaneously collect revenue in the Hospital with Stanbic Bank with the provision that any party can terminate the MoU giving 90-days notice of termination.”
As the two banks started the onsite banking services, the leakages persisted. Management decided to search for an End-to-End Hospital Revenue Collection Software to integrate and network its operations, and Stanbic Bank and UniBank were both requested to submit proposals for an End-to-End Hospital Revenue Collection Software in 2015.
Stanbic Bank successfully presented an efficient software, while UniBank failed to turn up during the two presentation sessions thus the hospital “awarded a contract to Stanbic Bank to pilot the new software in the entire hospital which is valued at USD240,000.”
The software if implemented is expected to simultaneously reduce revenue leakages and increase revenue.
“The Stanbic Bank approved End-to-End Hospital Revenue Collection Software was obviously not compatible with the UniBank’s software. Management, therefore, decided to discontinue the MoU with UniBank in order to enable Stanbic Bank deploy the new software throughout the entire Hospital – covering areas where Stanbic and UniBank were collecting revenue. In view of the Memorandum of Understanding (MoU) signed between Korle Bu and the banks for the onsite banking services, in which either party can terminate the contract by giving a 90-day notice, a Management decision, a notice of termination was given to UniBank on 12th July 2017,” the statement explained.
But this was followed by the hospital rescinding the decision for reasons not disclosed in the statement.
Find below the full statement
SUBJECT: CLARIFICATION OF DISTORTIONS IN RESPECT OF THE CONTRACT FOR ONSITE BANKING SERVICES IN KORLE BU
RELEASE: IMMEDIATE
On behalf of the Hospital, I wish to clarify distortions carried in sections of the media in respect of the onsite banking services in the Korle Bu Teaching Hospital.
The Hospital’s decision to outsource its revenue collection followed a directive by Government in 2008 that all public institutions should cede the collection of their revenue to selected banks in the country.
With the support of the Ministry of Finance and the Controller and Accountant General’s Department, the then Merchant Bank was selected for this exercise for the first time in 2008.
Following a review of their operations, Merchant Bank’s performance was found to be below par. This led to the abrogation of the contract with them and the selection of the HFC Bank, through a competitive process, to take over the onsite banking services in Korle Bu.
Again in 2015, a review of HFC Bank’s operation was conducted and it was established that its performance was not meeting the requirements of the Hospital. This was communicated to them and the process for searching for another bank that will provide a solution to the chronic revenue leakages bedeviling the Hospital.
A total of six banks were shortlisted to undergo a competitive selection process which was scored in 2015. Stanbic Bank emerged first and UniBank was 4th. A decision was taken to select Stanbic Bank that was first and UniBank that was 4th to partition the collection of revenue in the hospital.
Revenue Leakages
When the Hospital submitted the names of the two banks to the Controller and Accountant General’s Department for approval, it raised issues about weaknesses in UniBank’s operations in two other hospitals in the metropolis.
These issues were:
- Reconciliations challenges,
- delays
- non-provision of real time access to relevant stakeholders.
In spite of the advice of the Controller and Accountant General’s Department, an MoU was signed, appointing UniBank to simultaneously collect revenue in the Hospital with Stanbic Bank with the proviso that any party can terminate the MoU giving 90-DAYS NOTICE OF TERMINATION.
As the two banks started the onsite banking services the leakages persisted, Management decided to search for an End-to-End Hospital Revenue Collection Software to integrate and network its operations.
Stanbic v UniBank
Stanbic Bank and UniBank were both requested to submit proposals for an End-to-End Hospital Revenue Collection Software in 2015. The two banks were invited to make presentations on the End-to-End Hospital Revenue Collection Software on two different sessions in 2015. Stanbic Bank successfully presented an efficient software while UniBank failed to turn up during the two presentation sessions. Management thus awarded a contract to Stanbic Bank to pilot the new software in the entire hospital which is valued at USD240,000. The software if implemented will simultaneously reduce revenue leakages and increase our revenue base while improving the hospital’s operations in several other areas, both operational and clinical care.
The Stanbic Bank approved End-to-End Hospital Revenue Collection Software was obviously not compatible with the UniBank’s software. Management therefore decided to discontinue the MoU with UniBank in order to enable Stanbic Bank deploy the new software throughout the entire Hospital – covering areas where Stanbic and UniBank were collecting revenue. In view of the Memorandum of Understanding (MoU) signed between Korle Bu and the banks for the onsite banking services, in which either party can terminate the contract by giving a 90-day notice, a Management decision, a notice of termination was given to UniBank on 12th July 2017.
Losses
Events thereafter have made Management to rescind the decision to terminate the contract with UniBank.
So Korle Bu is currently in a stalemate where it continues to lose all the benefits of the End-to-End Hospital Revenue Collection Software.
It is important to stress that the management decision to engage Stanbic Bank as the sole institution for the onsite banking services in 2016 predated the appointment of the current Acting Chief Executive who started work in June 2017.
MUSTAPHA SALIFU
HEAD OF PUBLIC RELATIONS
FRIDAY, SEPTEMBER 29, 2017
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