Dhulikhel Hospital—a major health institution providing services to the people of several hill districts, including Kathmandu Valley of Bagmati Province—is reeling under financial strain.

The hospital has been struggling to provide salary to its employees since the authorities concerned are yet to release the budget under the health insurance and Covid-19 risk allowance for the last three months.

Low student enrollment in various medical courses of the institution, which also serves as the teaching hospital of Kathmandu University, due to the Covid-19 pandemic has also financially hit the hospital.

“We have been urging the health ministry and other concerned authorities to release the budget immediately. Let’s hope the budget will be released within a few days,” said Dr Ramesh Makaju, the administrative director at the hospital. The hospital has not provided salaries to its employees for a month and Covid-19 risk allowance for the last three months.

According to Pradhumna Shrestha, the administrative officer at Dhulikhel Hospital, around 1,400 employees are currently working at the hospital. At least Rs 70 million is required to issue monthly salaries to the employees.

Shrestha says the hospital needs Rs 190 million to release the outstanding salary and of the current month, including Dashain allowance. He said the procurement of medicines and tools in the laboratory has also been affected due to the lack of funds.

“The hospital is yet to receive around Rs 260 million under health insurance and Covid-19 risk allowance,” said Shrestha.

A large number of patients visit the hospital mainly due to the health insurance facility. According to the hospital administration, 700 to 1,400 people visit Dhulikhel Hospital on a daily basis. The insured people of Kavre, Sindhuli, Ramechhap, Dolakha, Sindhupalchok and even the people of Bhaktapur choose Dhulikhel Hospital for health services.

The hospital is straining under a financial crisis as the insured patients do not have to pay the hospital directly. The Health Insurance Board has not provided Rs 130 million to the hospital for the past three months.

The board says that it is unable to provide the amount to the hospital since the government is yet to release the budget to the board.

Dr Damodar Basaula, the executive director at the Health Insurance Board, argued that the delay in budget release to the hospital is not the board’s fault.

“The board released Rs 4.82 billion in the last fiscal year. The finance ministry did not provide Rs 3 billion required for the health insurance,” said Basaula. “The budget of the current fiscal year was endorsed just a few days ago. Process is underway to deposit the amount under premium to the board’s account. We will pay the hospital immediately after the budget is released by the government.”

Meanwhile, doctors, health workers and employees deployed during the first and second waves of Covid-19 have been deprived of risk allowances. Around 700 frontline workers are yet to receive the allowance.

Dhulikhel is a Covid-19 designated hospital in the region.

“We are unable to provide the allowance as the health ministry has yet to release the budget. We have sent the duty roster, attendance and salary details of the employees who were mobilised in Covid-19 wards to the ministry. But the budget has not been released yet,” said Shrestha.

Health workers and employees working at the Covid-19 ward of the hospital say they feel discouraged after being deprived of the assured risk allowance.

“We cannot say we don’t want to work in the Covid-19 ward. It is our duty to the citizens but we feel discouraged, as the authorities have failed to provide us with the allowance,” said a health worker of the hospital preferring anonymity.