M Tshabalala-Msimang on high cost of private healthcare

Health Minister meets industry over high cost of private
healthcare

8 August 2007

The Department of Health held a meeting with the representatives of various
sections of the private healthcare industry to discuss the concerns around the
issues of inflation and lack of transparency of private healthcare costs in
Pretoria today (8 August 2007).

The meeting was attended by at least 50 representatives of various sections
of the private health industry including the medical schemes, health
service-providers, pharmaceuticals and suppliers. All parties acknowledged that
the industry has been negatively affected by the reported undesirable practices
leading to inflated cost for the consumer.

The meeting acknowledged the urgent need for transparency across the
industry and to remove perverse incentives. All parties welcomed the step by
the Department of Health to gazette the regulations relating to the National
Health Reference Price List as the initial step to establish some degree of
transparency in the industry.

The meeting agreed on the need to move with urgency to end current finger
pointing where various sections of the industry blame each other for the
adopting undesirable practices.

The meeting resolved that next month the Minister of Health should convene a
discussion forum – a Health Indaba - where all the issues affecting the
industry can be discussed in an objective manner with mutual respect of all
role-players in the industry.

A task team is going to be established next week to ensure stakeholder
participation in the preparation of the agenda and proposal for discussion at
the Health Indaba.

All parties agreed on the need to approach this issue with a sense of
urgency and ensure that the private health sector work alongside the public
sector in ensuring that all South Africans have access to affordable and
quality healthcare.

Issued by: Department of Health
8 August 2007

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