THE government is in negotiations with the World Bank about taking an initial loan of about US$200m to help revamp public hospitals, a local newspaper has reported. In all, the proposed hospital revitalisation programme will cost $US270m, with the government providing the other US$70m. The World Bank will not only provide financial backing but will also provide technical expertise in the form of management restructuring. The government hopes that the project will improve the efficiency of the public health sector, and will allow easier access to the poor and disadvantaged to hospital services. Currently South Africa spends 8.7% of its gross domestic product on private and public health, which is considered high by international standards. It is estimated that 80% of South Africa’s population depends on public health care which accounts for less than 40% of South Africa’s total health resources.