Well-known economist Dawie Roodt has presented an alternative vision for the NHI, suggesting that the entire South African health industry be privatised, arguing that this was the only workable alternative to the envisaged national health plan.
Although universal healthcare programmes have succeeded in other countries with larger tax bases, critics believe this country’s government simply lacks the funding and the ability to successfully implement such a plan.
Speaking at AfriForum’s NHI conference in Pretoria on Monday, Roodt said that under his proposed solution, membership of a medical aid scheme would be compulsory for all South Africans, which would allow existing medical aid customers to continue with their membership unhindered.
The rest of the population would then be grouped into one of at least three private funds that would give them access to limited, but “high quality” private medical care.
“The funding for this will be drawn from the state’s healthcare budget, which is currently pumped into struggling or dysfunctional hospitals or clinics,” Roodt said.
He added that patients requiring further medical care could be accommodated in training hospitals, reports IOL.
Unity Health CEO Vernon Chorn said South Africa’s ageing population makes the NHI unviable. This is because an increasing number of people, after retirement, will no longer be contributing to the country’s tax base.
“The NHI simply will not survive under the current projections, as it requires a significant amount – around R600bn – to be successfully implemented. There is no way to raise this amount without raising taxes and this will ultimately result in a weaker GDP,” Chorn said.
Paresh Prema, head of actuarial consulting solutions at Alexforbes, said the NHI system could take eight to 10 years to fully implement.
President Cyril Ramaphosa is aiming to sign the NHI Bill into law soon. AfriForum has stated that it will challenge the Bill in court.
See more from MedicalBrief archives:
Income tax hike and payroll tax proposed for NHI funding
No decision on taxes funding NHI, says Finance Minister
NHI — a funding model masquerading as a delivery system