/ 2 July 2007

No high hopes for Gauteng hospital debt collection

The Gauteng department of health believes that the chances of recovering at least 40% of R426-million in outstanding patient fees is ”doubtful”, the department said on Monday.

Steps taken to recover the money include having a credit bureau verify patient details because some patients avoid providing the correct details to evade payment.

Spokesperson Zanele Mngadi said the department is also hand-delivering accounts to medical schemes where possible, phoning debtors to remind them of outstanding accounts, sending reminders to medical aids and, as a final step, handing debts over to the state attorney to take legal action.

Mngadi said the amount of R426-million includes outstanding fees from previous years. ”This figure is inclusive of all other previous years. Some 40% of the outstanding amount is doubtful in terms of collectability,” she said.

In reply to earlier questions from the Democratic Alliance (DA), the department said that reasons for outstanding accounts include settlement delays by medical schemes, the lengthy legal processes required for claims against the Road Accident Fund, and a lack of staff with revenue skills at hospitals.

The Johannesburg Hospital had the most outstanding accounts with R157,6-million owed.

In a statement, the DA suggested outsourcing debt collection to private agencies. — Sapa