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NHN reaction to the proposed National Healthcare Amendment Bill

18 June 2008 National Hospital Network

‘Our major concern with the controversial proposed National Healthcare Amendment Bill is the possible effect on the future supply of healthcare practitioners. This includes public sector practitioners, as well as doctors, specialists, nurses, paramedics and medical technicians who work in the private sector,’ says Otto Wypkema, CEO of the National Hospital Network.

National Hospital Network is a group of 74 independent private hospitals, day clinics and specialist facilities.

Some of the stakeholders have suggested that the employment of doctors would be a solution but we would like to emphasise that this could lead to further consolidation in the market due to the current shortages of doctors who would most certainly gain employment from the highest bidder.

‘Some of our members feel strongly that in principle, doctor’s fees should not be regulated as no other professionisplaced under the same restriction. In their view the proposed amendment is therefore anti- competitive, unconstitutional and would very well result on greater pressure being placed on the already over burdened public sector..

‘But others feel that although we do not support price regulations, it is in our interests to support collective bargaining based on economic principles, an equitable rate of return based on methodology which reflects actual hospital inflation. They require the price setting process to be independent and one which ensures the sustainability of the industry.

‘As independent hospitals our key concern is whether or not the prices agreed upon by the role players will be realistic. As the Minster of Health is mandated to protect the well being of the sector, we must assume that she, or those mandated to negotiate on her behalf will negotiate in good faith,’ said Wypkema.

‘In our view, the future of healthcare in South Africa depends on whether or not the agreed upon tariffs are fair, whether or not they will take into account the real costs.. We are therefore primarily concerned about the proposed price ceiling for prescribed minimum benefits as they currently account for approximately 70% of our revenue

‘This will obviously exacerbate existing shortages. The Minister is well aware that there is a world wide shortage of medical personnel, and medically trained people are amongst the most mobile professionals in the world,’ he said.

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