NHI will not solve SA’s healthcare problems, PwC survey says

3 July 2012
Business Day

Respondents to firm’s survey say National Health Insurance alone cannot overhaul healthcare, with working conditions and primary healthcare also needing attention

THE National Health Insurance (NHI) would not necessarily resolve the current state of health services, according to a survey by professional services firm PwC.

The NHI aims to provide universal access to quality healthcare. However, critics have pointed to the affordability of the plan and the current state of public hospitals as major problems in the plan.

According to the NHI green paper, it will be phased in over 14 years, with the cost projected to rise from R125bn next year to R256bn in 2025.

However, 100% of 20 the medical schemes surveyed agreed the state of healthcare in SA was deteriorating, with 55% saying the NHI would not change this situation.

"NHI alone is not the solution as working conditions need to be improved, primary healthcare has to be revived (and) pharmaceutical distribution for state-owned facilities should be decentralised," respondents say.

It may also deepen the challenges that medical schemes face.

Ilse French, PwC’s medical schemes leader for southern Africa, at the launch of the survey on Tuesday, cited regulations and "excessive interference by the Council for Medical Schemes" as one of the main challenges facing the industry. "The NHI will make the industry more complex, and many schemes do no believe that regulation will level the playing field."

Health Minister Aaron Motsoaledi has made it clear he is intent on regulating private-sector prices to contain costs and provide certainty to funders — including medical schemes and the state.