Industry News

Business cautions against reckless and hasty implementation of

05 June 2009

In Categories: Industry News , Industry News > General

HOSPITAL ASSOCIATION OF SA

Business cautions against reckless and hasty implementation of
National Health Insurance (NHI)

Friday, 5 June 2009: CEO of Business Unity South Africa (BUSA) Jerry Vilakazi says the private healthcare sector must be prepared to engage constructively with the Department of Health on the issue of National Health Insurance (NHI).

Speaking at the annual conference of the Hospital Association of South Africa (HASA) in Durban, Vilakazi said the private sector needed to engage constructively or be vulnerable to political leadership who, under pressure to improve quality in the public sector, may divert attention to private sector.

“As the private sector we dare not walk away if we fail to make our positive contribution otherwise we will run the risk of being saddled with a significant, far reaching policy which doesn’t take into account the valuable contribution the private sector can make to making healthcare more equitable,” said Vilakazi. 

Vilakazi recognised the importance of the healthcare system saying that South Africa needed a healthy workforce to be globally competitive.

He said business recognises that NHI is a noble objective and a critical commitment of the new administration.  “It will be a vital milestone towards the eradication of inequities in our healthcare system,” he said.  “However we would like to caution that a reckless and prematurely implemented NHI may delay the achievement of access to quality healthcare. The successful implementation of NHI depends on the state of readiness of delivery in the public sector and a viable funding model.”

BUSA has developed a draft document presenting a business-mandated position in preparation of engagement with government.

Vilakazi urged government to provide for sufficient public discourse and engagement with all stakeholders on NHI.  “It will not be to anyone’s interest to rush through such a critical policy as it needs to be premised on a sustainable funding model.”

Business will play a critical role in the funding of an NHI system either through a general tax or through employee taxes.

“Today’s eco realities may require government to rethink the feasibility and timing of meeting some of its goals, including the immediate implementation of NHI,” he said.

With twice as many hospital beds in the private sector than in the public sector and six times more nurses per patient, Vilakazi said the question is how to leverage this capacity in a commercially sound manner. 

“These are questions that we need to engage with,” he said. 

Vilakazi said he hopes that the trend of the past two to three years where the private sector was seen as an obstacle to providing healthcare was a thing of the past.

“The private sector, which developed out of a free market economic environment with all the characters of a commercial enterprise, has a critical role to play in contributing to equitable healthcare,” he said.

CEO of HASA, Kurt Worrall-Clare said the private hospital sector was working on concrete proposals that would help leverage skills and resources in the private sector.

“Fundamental to the successful implementation is the improvement of the public sector,” he said.  “Our concern is that the expectations created by NHI, the good intentions may be negated by hasty implementation.”

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