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Deputy Speaker of Parliament, Thomas Tayebwa, proposed that the UGX 600 billion Non-Tax Revenue (NTR) generated by Uganda’s referral hospitals be retained by the hospitals to improve service delivery. Speaking at Mbarara Regional Referral Hospital, he argued that decentralizing the management of these funds would enable hospitals to address their operational and equipment needs.

The Deputy Speaker of Parliament, Thomas Tayebwa, has proposed that the Non-Tax Revenue (NTR) generated by referral hospitals, estimated at UGX 600 billion annually, should be retained by the hospitals to improve service delivery. Tayebwa made this recommendation during a meeting with the leadership of Mbarara Regional Referral Hospital last week, 2024, emphasizing that the funds would be better used for upgrading medical facilities and addressing operational needs.

As of 2024, Uganda has 17 regional referral hospitals and 62 general hospitals. These facilities are critical to providing healthcare across the country, but they face significant budgetary constraints. Tayebwa highlighted that allowing hospitals to keep their NTR would empower them to better manage resources, purchase essential medical equipment, and enhance healthcare services for the communities they serve.

“We need to decentralize how resources are managed at these hospitals. Retaining the non-tax revenue can significantly improve the quality of care by allowing hospitals to address their most pressing needs,” Tayebwa said.

He also supported upgrading Mbarara Regional Referral Hospital to a national referral hospital, noting that each of Uganda’s four traditional regions—Eastern, Western, Northern, and Central—should have such a facility. Currently, Mulago serves as the only national referral hospital in the central region.

Tayebwa acknowledged the challenges faced by the hospital, including insufficient budgets for operations. Mbarara’s Acting Executive Director, Dr. Deus Twesigye, revealed that the hospital’s non-wage budget allocation is UGX 4.125 billion, which barely covers essential costs like pensions, water, and electricity. The hospital also faces critical gaps in its retooling budget, with only UGX 120 million available—far less than what is needed to equip surgical theatres, which require at least UGX 290 million for equipment.

“If we can secure at least UGX 3 billion, it would go a long way in solving operational issues. I am committed to pushing for this in the next budget,” Tayebwa pledged.

In addition to budgetary issues, Tayebwa urged hospitals to take a leading role in the fight against malaria, which continues to place a huge burden on Uganda’s health sector. “We lose a lot of money and lives to malaria, especially in rural areas. Eliminating this disease would not only save lives but also free up critical resources in our healthcare system,” he added.