Industry News
Hospitals survive bearish markets
08 August 2008
In Categories:
Industry News
By LUCAS MALAMBE
Local private hospitals look set to once more survive this downward cycle of the global economic onslaught and local regulatory challenges. The bigger hospitals are investing heavily in new projects both local and international, as economists predict that bears are making a strong comeback.Unlike the cuddly recession of the early 2000s these bears, they predict, are grizzly and South Africa had so far not able to escape its violent paws.
Food and oil prices continues to strain other commodities including medicine, surgicals and hospitalisation. Medical inflation, high interest rates, and shortages of electricity supply have affected the cash flows (and direct investment) of private hospitals in South Africa. Major hospitals had to buy expensive generators (and incur running costs) to endure the power cuts that plagued South Africa earlier this year.
Despite the rolling black outs, lofty interest rates and high prices of major articles of trade, the sector had to contend with the financial insecurity that came courtesy of the rather violent power struggles to control the ruling party and price regulations.
This Top Companies, 2008 article is a chronicle of the industry’s durability and gives one an idea about the general health of the private healthcare industry particularly hospitals. Despite slipping off the ranks of the Top Ranked Companies, the two JSE-listed hospital groups Medi-clinic and Netcare (a glimpse of the financial strength of the industry) are reporting strong financial results demonstrating a well-developed survival instincts and commitment to the healthcare user who continues to vote with his feet.
The capacity of private hospitals in SA to endure low growth economic conditions was partly due to their ability to partner (such as Netcare’s deal to sell drugs in Woolworths) with other stakeholders to stimulate the ailing health rand. In the last financial year, the big SA groups also went on to conquer international markets to bring in more investment. It is a kaleidoscope of survival indicative of the creativity seen in even the smaller and independent hospitals.
The secret is strict adherence to high quality, excellence and safety of care anticipated, rightly so, by every healthcare user visiting our facilities. These factors of care are typically a prominent part of Hasa and, as demonstrated by the survival of our member hospitals, make a lot of business sense because stock follows a successful business. These are some of the reasons why SA is slowly becoming a healthcare destination for international patients looking for affordable world-class health care. More significantly, we are seeing new players particularly black businesspeople investing in the sector.
For now, of course with the benefit of hindsight, the rear-view mirror appears clearer than the windshield. We still have promises of a long legislative tussle with the proposed healthcare laws that will inevitably impact on the sector.
Former Hasa chairperson Norman Weltman observed at the last Hasa AGM on 17 July 2008 that we are dealing with a democratically elected government with a duty to consult and an administrative responsibility to ensure their decisions are based on well-founded research.
It is a pity that government is yet to justify (with empirical evidence) their position to fix hospitalisation and ward fees. But there is hope. The high numbers of healthcare users still hold our facilities in high regard as demonstrated by the latest Stats SA's General Household Survey.
Despite the negative growth of the medical schemes membership, the Percentage of Private Sector Consultation if Injured or Ill in June (a good indicator of the number of private healthcare users) is now 42% - a four percentage point increase year on year. The satisfaction levels (indicating quality) hovers at 97% and we should not only be proud of these figure but also confident of the ability of the sector to sustain itself - as stock follows success.
Related:
FAQ
NEWS
DOCUMENTS
|
20 July 2011
HASA is inviting all of its member to submit ENTRIES with reference to the categories listed below for the HASA Awards of Excellence.
13 July 2010
The annual Hasa Awards of Excellence are part of the Ministerial Healthcare Awards. This year's theme is Quality is Excellence. The process to find the best of the best in the private hospital industry is nearing its end. The Health Excellence Awards 2010 will take place in November 2010 and the deadline date for submission of entries is 07 October 2010.
15 June 2010
The Children’s Act 38 of 2005 (as amended). How does it affect healthcare?
Several outstanding provisions of the Children’s Act [Act 38 of 2005] have become operational. The relevant Government Gazette has made the date upon which the law became operational as being 01 April 2010.
Click here for doc's
 |
|
The Hospital Association of South Africa is a non-statutory body; the Association will gladly act as a mediator and will investigate an incident on behalf of a patient, or relative.
|
Lodge a Complaint
|
