Meridian Medical Center[Photo/capitalcenter]Meridian Medical Centre is sueing The National Hospital Insurance Fund (NHIF) for Sh1.5 billion compensation claim over the termination of a controversial medical services contract it signed with the private clinic five years ago.Meridian Medical, a chain of private clinics, has accused NHIF of declining to pay the money in spite of the Attorney- General’s advice that part of the payment be made.“The plaintiff suffered loss of profit due to the malicious and negligent breach of contract by NHIF through the abrupt and unjustified termination of contract,” Meridian says its petition.Meridian has submitted in court a legal advisory the AG had sent to the NHIF CEO, asking him to clear part of the total amount claimed.Meridian is pursuing a huge debt it says were not paid for services provided, payment in lieu of notice and loss of business and profit all totalling to Sh1.5 billion, with interest at the court rate.NHIF has dismissed the claim, indicating that it is not in breach of contract, and has in turn accused Meridian of failing to submit required returns as provided for in the contract it signed with the NHIF Board.But NHIF holds that it has not breached any contract and has asked the firm to produce any proof.

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