The Department of Health are trying to push a new bill that will set up a central bargaining chamber for negotiations in private sector health industry pricing. As medical aids are now forced to cover certain prescribed minimum benefits (PMBs) there is concern that schemes may be exploited by service providers who know that these conditions have to be covered. Over the past few years private health care in South Africa has become concentrated among three major players - who account for about 80% of the market. This, in itself, could be a concern in terms of any kind of control over medical costs. This proposed new bill is not popular among most of the private healthcare industry. Some go as far as saying that it will sound the death knell for private medicine in South Africa. But is it in fact such an imposition? At the moment hospitals and specialists can effectively charge what they like and over the past five years private health costs have spiralled - now increasing considerably faster than the inflation rate. People land up with co-payments, even if they are on good medical aids and private health care is simply unaffordable for many. Hospital groups turn big profits for their share holders and I must admit that I don't know a private specialist who is anything other than wealthy. Believe me I think that doctors should be well remunerated for what they do and I also know just how hard most of them work for their money. But in this world of spiralling costs and increasing inequality, I do think that there is room for some kind of cap on costs and if the sector are not prepared to do this voluntarily, then perhaps intervention is needed.
Bridget Farham Editor https://www.bizcommunity.com