Hospital Association of SA response to Council for Medical Schemes report

In its latest annual report published yesterday (2012/2013), it once again appears that the Council for Medical Schemes (CMS) has incorrectly blamed price increases for the increased expenditure on private hospitals by medical schemes.

“This is unfortunate and misleading - especially notwithstanding the fact that medical scheme membership grew by 1.8% during the period under review in the CMS’ report,” says Hospital Association of South Africa (HASA) CEO, Dr Dumisani Bomela. HASA represents the majority of private hospitals in South Africa.

According to Statistics South Africa (StatsSA), in 2012 hospital price inflation was 5.1%. “The drivers of increased expenditure on private hospital services are manifold from inflation to increased demand for private hospitals, a greater burden of disease, new technology, to name but a few,” says Bomela.

Private hospital pricing inflation has been well contained for several years with hospital inflation of 6.9% in 2010; 5.7% in 2011 and 5.1% in 2012 according to StatsSA.