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National health might be less than you bargain for

28 September 2010 | Healthcare | General | Gareth Stokes

The African National Congress (ANC) proposal for national health insurance (NHI) draws extensively from similar systems implemented in the developed world. One such system is the National Health System (NHS) implemented in the United Kingdom on 5 July 1948. The publicly funded healthcare system gobbles up the bulk of that country’s Department of Health budget, £98.7 billion in 2008. Could we clone the NHS in South Africa? The short answer to this question is “No!”

South Africa is a country of some 50 million people. It’s a country where one in every four job seekers is unable to find work and approximately seven million taxpayers (income tax) support upwards of 12 million social grant recipients. We’re in poor shape when compared to England. They have 56 million citizens, of which 90% contribute to state coffers. Instead of asking whether we can clone their system, we’ll focus on whether the UK NHS delivers on its promise... We found some anecdotal evidence from Dr Willie Lambrechts, who shared some of his NHS experiences during a recent Old Mutual Actuaries and Consultants’ healthcare breakfast.

The wealthy get better care!

Dr Lambrechts’ first observation was that the UK healthcare landscape consisted of two tiers, each controlled by the Department of Health. On the one hand British-only private practitioners – stocked by the Royal College of Surgeons – cater to the well to do medical scheme members. The NHS, on the other hand, accommodates all comers. NHS doctors and specialists are sourced from countries around the globe, with plenty of South African qualified medical practitioners finding a home there.

At the grassroots the NHS relies on a system of general practitioners who essentially act as a filter to keep the hospital system from clogging up. NHS hospitals are run as trusts which are allocated funds each year based on their “throughput”. “The trusts keep data on what happens in the course of each year – and are then allocated funds in terms of the services rendered,” said Dr Lambrechts. These hospitals have to meet all of their expenses from this allocation, including doctors, chemists, purchase of apparatus, nursing staff, laboratories etc.

Money gets in the way of logic

England has many funny laws. The NHS requires hospitals to discharge patients into the care of a relative or family member. This person must be willing and able to take the discharged patient home and administer whatever post-hospitalisation care might be required. In the event nobody can be found the patient ends up occupying a hospital bed indefinitely. How can this work in the managed healthcare environment?

“It works like a dream,” said Dr Lambrechts, “because a healthy patient in hospital is very cheap to accommodate.” Everybody is happy. The trust administrators are happy because there are no expensive procedures or medical investigations. The nurses are happy because they don’t have to bother with admission / discharge paperwork. And doctors are happy because their rounds are over in a heartbeat. “English doctors – with all due respect – don’t work!”

A surgeon’s work is never done

Dr Lambrechts talked us through a typical day as a surgeon operating in an NHS hospital – we’ve paraphrased his story in our own words: On this particular day I have 15 minor operations and five major operations on my list. I walk down to the admittance room at 7am to see my patients pre-op. At this point I’m told by an orderly that only four of my patients have been admitted, all for minor procedures. Ok – no argument from me – I speak to the four patients and make sure they’re ready to proceed before heading to the theatre for a 9am start. The anaesthetist only arrives at 9:30am and tells me he’s cancelled two of the four patients because they’re asthmatic. Strange – they looked fine two hours ago! I finish the two remaining operations in the hour between 09:30 and 10:30 am. Every one gets their full salaries for this “shocking” productivity.

This erosion of productivity is further offset by the cost of medical technology and the ever present threat of litigation. Dr Lambrechts observes: Nobody working in the NHS has any idea of the cost involved.” He mentioned the use of standard x-ray versus CT scan for urology patients. Every single patient in the hospital’s urology ward had received both x-ray (around R200 in 2002 money) and CT scan (at R17 500), despite the x-ray being sufficient in 97% of all cases. Why? “Well doctor – we do it for medical legal purposes!”

Can it get worse?

The next story should give the architects of South Africa’s eventual NHI food for thought, because a dual private-public system is open to a variety of abuses. The doctor mentioned 63-year old male patient who had been on the NHS operating waiting list for nine months. This gentleman had to use an in-dwelling catheter until such time as the surgery could take place. Concerned with his patient’s discomfort, Dr Lambrechts made sure the surgery went ahead. His reward – apart from the gratitude of the patient – was an unpleasant confrontation with the hospital executive.

The said: “What you did is not acceptable – you’ve jumped the waiting list – a lot of people are on the list before this guy…” But what came next was even worse. “Nobody can last an in-dwelling catheter indefinitely – if you’d left this gentleman he would have eventually become frustrated and gone private!”

Editor’s thoughts: Whether or not you view the UK’s NHS as an exemplary healthcare system depends on how closely you scrutinise it. We cannot ignore the inefficiencies exhibited in a health system with multiples of the locally available funding and human resource. We can do better than the NHS, but only if all healthcare stakeholders set aside their profit motive and focus on social outcomes instead. Can South Africa build a better health system than the UK? Add your comments below, or send them to [email protected]

Comments

Added by Mike Stow, 30 Sep 2010
In many ways, the DoH is an unworkable empire that cannot be reformed - bloating an unlready unmanageable network with billions of rands more funding taken away from private citizens, will simply reduce overall health care. Yes, primary and especially rural care desperately need better management and resources, including funding - as do state hospitals - but this should be funded from better administration of general tax revenue, and when Government has sorted out its own ministry, it will have credibility to lead broader reform.. NHI is, however, possible and can exceed the UK if as Andrew says, Government separates "funding" from "delivery", making our private health care facilities and medical funds a big part part of the solution. It is not a huge stretch to expand Risk Equalisation to "income subsidies" as a funding mechanism, for example. Regrettably, the excesses and blindness of "BBBEE" patronage continues to expand throughout all levels of government, including the DoH, draining all efforts to uplift our people in an orgy of self indulgence, Building on a failed platform with a rotten core of managers, can easily become the most expensive mistake that could topple the ANC from dominance in the tri-partite alliance over the next 2 decades.
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Added by Jeremy Robertson, 29 Sep 2010
Just like Affirmative Action, BBEEE and land reform this is another failed government initiative waiting in the wings , designed to capture votes and little else.
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Added by Pieter, 28 Sep 2010
The government cannot even run a sewerage system that works, how can we trust them with more money and people`s life’s .They should outsource healthcare to private sector to fix the state system not burden us with more tax .Talking about tax we should broaden our tax base to all earning a Salary even if it is from low base.
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Added by senor neek, 28 Sep 2010
The highly-esteemed NHS almost killed my wife... It took THREE visits to diagnose double-pneumonia - despite my insistence that she had either bronchitis or pneumonia. Twice she was sent home with a temp of 40+ and PANADO. This took place in the middle of a freezing-cold Winter. The system in the UK does NOT WORK, despite the 100billion sterling wasted on it. It must also be noted that we were both registered on the NHS, not foreigners seeking medical assistance. Finally, who wants to pay 11% of their GROSS salary for such a rubbish service when Discovery can cover a family for under R5k?
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Added by Guy, 28 Sep 2010
There is no logic when it comes to the ANC administration. Our government hospitals are already in deep trouble (poor financial and capital administration has led to almost a collapse of the system) The ANC government actually wants private hospitals to pick up the slack and fix the governments mess. I have heard some horror stories about the UK NHI . Doctors don't care about the patient and most people are treated like pieces of meat!
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Added by FAM, 28 Sep 2010
The fact that we have a NHS that is in place somewhere means that we will be able to avoid the negatives of their system and work on the positives in our own. I agree and accept that it is a challenge, but we overcame tougher challenges previously.
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Added by Marli, 28 Sep 2010
Not everybody can affort a Discovery or any other medical aid. All citizens have the right to good healthcare. The NHI will assist to ensure that all citizens have a basic cover to healthcare, preventing service providers to charge whatever they want to. Challenges....yes there would be, but we are a innovative country than will come up with solutions to deal with this problem.
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Added by Grant, 28 Sep 2010
Let's fix what we have got and then build on a solid foundation, not on a rickety ramshackle of a system. Let's not settle for mediocrity but rather work for excellence and remember that nothing born from inefficiency and mismanagement can get better when tasked with even greater challenges. Build the foundations and then reach for the stars.
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Added by Concerned, 28 Sep 2010
Gibbons
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Added by Darius, 28 Sep 2010
The government wants to: Remove the medical fund contribution rebate for tax purposes, which in my case equates to R32000/p.a. Force me to pay additional tax to fund their NHI. Then I need to belong to a decent medical scheme costing R60K p.a; because the NHI will not be any better then what current public hospitals offer. How in this world can a pensioner afford this?
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Added by Andrew, 28 Sep 2010
The DoH must separate FUNDING from PROVISION and sort out the latter. They are being blinded by the large amount of money in Pvt Medical Schemes, and think that money can solve a problem that stems from bad managment and bad policy decision at national and local gvt level If the DoH can fix the management practices in the current state infrastrcuture within the current budgets that they do have, we will not, IMO, need to increase the tax base as much as the NHI is contemplating
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