/ 15 August 2005

SA private hospitals cheaper than US, Australia

Private hospitals in South Africa perform much of their surgery better, faster and cheaper than those in Australia and the United States do, a study published on Monday found.

The Hospital Association of South Africa, which represents about 75% of private hospitals and clinics, did a comparative analysis of average private hospital costs in South Africa, the US and Australia.

The association’s chief executive, Kurt Worrall-Clare, said South Africa is up to 50% cheaper than the US and Australia with regard to procedures requiring hospitalisation.

”This confirms that South Africa’s private health-care facilities are able to perform procedures such as coronary bypass surgery, hip replacements, renal transplantation, cataract surgery and others better, faster and cheaper than most First World countries, without any waiting period,” he said.

”Not only do our private hospitals subscribe to international measurement criteria in various disciplines such as organ transplantation, renal dialysis and open-heart surgery, but they are also determined to remain abreast of technological advancements and regularly introduce the latest health-care innovations”.

Worrall-Clare said on average, the private hospital industry invests R8-billion in health-care technology annually — about 45,7% of the sector’s turnover.

According to the study, the average combined cost of ward and theatre fees, drug and surgical equipment for an uncomplicated Caesarean section in a private hospital in South Africa is about R15 431, almost half the R29 445 in Australia and a quarter of the R58 602 cost in the US.

The cost of a colonoscopy in a private South African hospital, R3 458, is one-third less than the cost of the identical procedure in Australia, R5 305, and 30% of the cost for the same procedure in the US, which is about R11 760.

A tonsillectomy performed in South Africa is between 53% and 58% cheaper than in Australia and less than 10% of the cost levied in the US.

A hip replacement is 77% cheaper than in Australia and 58% cheaper than in the US. A vasectomy costs R3 883, which is 10% of the R39 900 charged in the US.

”Statistical evidence also points to better patient outcomes in South Africa’s private health-care system for several major procedures such as organ transplants and joint replacements,” Worrall-Clare said.

”In addition … the morbidity and mortality rates in the private health-care sector are low, with maternity mortality in particular being virtually non-existent.”

The length of time a patient spends in South Africa’s private hospitals is among the lowest worldwide. This has a positive impact on health-care costs and is felt on a social and economic level as patients return to productive employment far sooner.

The average stay for an uncomplicated Caesarean section is four days in a private hospital in South Africa, compared with 3,38 days in the US and 5,9 days in Australia.

Patients who undergo a straightforward hip replacement in South Africa’s private hospitals spend an average of 5,58 days in hospital, while the length of stay for the identical procedure in the US and Australia is 4,59 and 9,5 respectively. — Sapa