NHN: Despite being in a strong position, we advise caution

The National Hospital Network, which represents the majority of independent hospitals in South Africa supports universal access to healthcare for all South African citizens.

‘As a result of our tariffs being the lowest in the market, we are ideally situated to provide health services for NHI. Some of our hospitals are geographically situated in disadvantaged areas, so are accessible to low income patients,’ says National Hospital Network CEO Otto Wypkema.

‘Nevertheless we advise caution and careful consideration with respect to the scope and timing of implementation on National Health Insurance. The private sector should be fully engaged in the process so that our consumers, sick South Africans, get the services they require.

Wypkema was responding to an announcement made by the Deputy Health Minister Dr Molefi Sefularo at the Board of Healthcare Funders annual conference that legislation would be in place by April next year to start implementing the NHI plan.

National Hospital Network’s members include 88 independent private hospitals, day clinics and psychiatric clinics and ophthalmic clinics. The group is the fourth largest private hospital group with solid representation in South Africa’s major cities with over 18% of the private sector beds.

‘We have confirmation from a wide range of sources, including the Council for Medical Schemes, trustees of Medical Schemes and administrators that NHN’s fee structures are the most competitive of the hospital groups. In theory, we would therefore be first in line to benefit from greater numbers of public sector patients,’ he said.

‘But we are concerned that over-hasty or ill-considered implementation could threaten already our already vulnerable shortages of doctors, specialists and nurses. Many doctors in the private sector bulk at the idea of the capitation-based remuneration which is a key feature of National Health Insurance. Efforts must be made to accommodate these doctors, so that they stay in South Africa where they are needed.

‘Furthermore, the Department of Health has confirmed that budgets and costings would only be available after the proposed legislation was in the public domain. Surely parliamentarians should have a notion of what NHI is going to cost as they evaluate the proposals?’, he asked.

Firoze Habib, spokesman for the Louis Pasteur Hospital in Pretoria said that the proposed funding of NHI would be general tax with a progressive mandatory contribution.

‘In a society which is already overburdened with tax, an underperforming economy and a largely unskilled labour force, are we not shooting ourselves in the foot?’, he asked. He suggested concentrating on growing the economy, attracting foreign investment, improving infrastructures and creating business opportunities.

‘Against the backdrop of nurse, doctor and pharmacist shortages, we cannot afford a further loss of skilled labour’, said Habib.