Private hospitals have hit back at charges that their price increases are excessive in a new report that shows that private hospital inflation in South Africa is in line with that of developed countries.
The report shows that private hospital inflation of 5,6% for last year was lower than the overall medical inflation rate of 6,1% and was lower than the acceptable average price increase of 7,9% set by the Council for Medical Schemes at the beginning of this year.
Compared with several countries, including the United States, Australia and New Zealand, only the European Union — at 4% — had a lower rate of hospital inflation than South Africa. Turkey, the only other emerging country, included in the study, recorded hospital inflation of 9%.
The research was commissioned by the Hospital Association of South Africa (Hasa) and was released on Thursday. Hasa was critical of a report prepared for the Competition Commission earlier this year by Alex van den Heever of the Council for Medical Schemes. Van den Heever’s research found that private hospital costs had risen by more than 45% in just five years.
Mike Schussler, who wrote the Hasa report, said his findings had been calculated using ‘patient daysâ€, which is an internationally accepted unit of calculation. Van den Heever’s findings had worked out the cost per medical scheme beneficiary and had not taken account of increased use of hospital services.
‘It’s like complaining that a school’s fees have gone up by 5%, but there has been an increase from 100 to 150 pupils. The school’s entire revenue structure has changed,†Schussler said.