cost
26 July 2007
The Ministry of Health is concerned about the reports of inappropriate
inflation of private health care costs allegedly involving some providers in
this sector. The allegations are part of the reports emerging from the Board of
Healthcare Funders conference in Sun City in which the Ministry and Department
of Health actively participated.
During her opening address to the conference on Monday (23 July), the
Minister of Health, Manto Tshabalala-Msimang raised concerns about the costs of
private healthcare. The Ministry believes that if it is true, the reported
practice directly undermines our Constitutional obligation to improve access to
healthcare.
The Minister told the conference that the cost of healthcare in the private
health sector in South Africa was high.
"It is concerning to note that while we observed a 8,8% decline in the
expenditure on medicines dispensed by pharmacists and providers other than
hospitals compared to 2004 (as a result of medicine pricing regulations), there
was an increase in hospital expenditure from R11 billion in 2001 to R16,1
billion in 2004/5."
"There was also an increase in specialists and total non-healthcare costs.
So clearly the private healthcare funding industry paid 12,1% more for services
in 2005/6 compared to the previous year (R45,8 billion in 2005/6 compared to
R40,8 billion the previous year)," said Minister Tshabalala-Msimang.
The Minister said the Department of Health was embarking on initiatives
aimed at addressing various challenges in the private health sector including
high cost.
"We are setting up a legislative framework relating to the reference price
list which will determine the cost of health services. We are also establishing
the Office of Standards as provided for in the National Health Act to
critically look at the quality issues," said Minister Tshabalala-Msimang.
Contact:
Sibani Mngadi
Spokesperson
Cell: 082 772 0161
Issued by: Department of Health
26 July 2007
