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Mediclinic News : NHI REVENUE COULD FALL IN SOE DEBT BLACKHOLE

Title

NHI REVENUE COULD FALL IN SOE DEBT BLACKHOLE

Date

2019-10-31

Link

nhi-revenue-soe-debt-blackhole

News Description

BIZNEWS The ability of the state to manage the proposed National Health Insurance and more importantly to fund the roll-out of the scheme has been in question since its inception. It is another policy dreamt up by the ANC alliance that sounds good as a utopian ideal. Who does not want free medical care for all as is enjoyed in many developed countries? It is however, as many of its critics have pointed out impractical and unaffordable for a developing nation like South Africa. In practice it will place all medical service providers in South Africa under the control of the state. The Treasury has admitted in the medium-term budget that the National Health Insurance will require an additional R33bn a year from the 2025/26 financial year and that the estimates of the roll-out published in the Green Paper of 2011 and White Paper of 2017 are “no longer affordable.” In view of this a “smaller package of changes” have been recommended. There is another issue that seems to be underestimated and that is the R98bn in state-medico claims that the NHI bill is silent on. A local provider of professional healthcare indemnity cover, EthiQal says there is a “deafening silence in the NHI bill on just where medico legal liability will rest.” The Gauteng Health Department has recently warned public sector doctors that they could be held liable personally for damage claims in medical negligence cases or “adverse events.” Critics of the NHI are not only worried about the cost of the service, but also whether money paid into the NHI will be ring-fenced and “used solely to fund the NHI.” As Anthea Jeffery writes in the Daily Friend, “these monies will be paid into South Africa’s National Revenue Fund and used for all kinds of government spending.” – Linda van Tilburg
Created at 2019/11/04 09:16 AM by Mediclinic
Last modified at 2019/11/04 09:16 AM by Mediclinic