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Industry News

Waiting sickness

14 January 2009

In Categories: Industry News , Industry News > General , Medic-Legal , Industry News > Patients

Healthcare providers are deeply concerned about the Compensation for Occupational Injuries and Diseases’ (COIDs) below inflation tariff increases and unacceptably late payment of claims.

HEALTHCARE service providers are livid at the sub-inflation fee increases they receive from the compensation fund for workers who sustain injuries on duty. They also accuse the fund of delaying payments by between six months and a year. Already, an increasing number of doctors are refusing to treat patients covered by the fund, which is a statutory one administered by the Department of Labour.

The fund collects contributions from employers and pays medical service providers on their behalf for work-related accidents. Last year, revenues grew 19% but claims fell 14%, to R230m. Yet the fund pleads poverty, say the doctors. Fund commissioner Shadrack Mkhonto conceded there were "weaknesses" in the system, such as staff shortages, poor IT and insufficient documentation procedures, and said improvements were being made.

Hospital Association of SA (Hasa) CEO Kurt Worrall-Clare urged employer groups "who commit so much money" to the fund to get involved in resolving the issues of late payments and low increases. Hasa wants Labour Minister Membathisi Mdladlana to intervene. Hasa is unimpressed by the fund's decision to appoint North West University to probe the pricing model rather than discuss it with the hospitals. Service providers are still waiting for their increments for the 2008/2009 year, after receiving a sub- inflation increase of 5% previously.

Medi-Clinic fund relations executive Roly Buys said hospitals were asking whether they should continue to do this business. Norman Mabasa, president of private doctors' lobby the SA Medical Association, says the fund does have the money, but is "choosing to neglect [its] duties and letting patients not get treatment, in the name of saving".

Shoks Mzolo: The Financial Mail, 9 January 2009

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