/ 8 August 2007

Indaba planned for private healthcare industry

An indaba to discuss inflation and lack of transparency in the private healthcare industry will be convened next month, Health Minister Manto Tshabalala-Msimang said on Wednesday.

The planned indaba will come after the Department of Health held a meeting with about 50 private healthcare industry stakeholders in Pretoria on Wednesday.

At that meeting, Tshabalala-Msimang criticised the industry for ”shades of undesirable business practices that undermine our legislative and policy framework and more importantly our people”.

She said in the past she had stood back to allow the private health sector to sort itself out.

However, after seeing ”no sign of progress” she had decided to take action.

”I have the responsibility to play a stewardship role over the whole health system.”

Tshabalala-Msimang said all parties had acknowledged the negative effect reports of inflated costs had had for the industry.

”The meeting acknowledged the urgent need for transparency across the industry and to remove perverse incentives.”

She said the indaba would ensure ”the primary person we should be concerned about is the consumer”.

Private healthcare should be governed by affordability and quality.

Tshabalala-Msimang said all stakeholders agreed that her department’s gazetting of regulations related to the National Health Reference Price List was the first step to establishing transparency in the industry.

Wednesday’s meeting was attended by pharmaceutical and medical-supply companies, medical-aid schemes and service providers, including Netcare, Medi-Clinic and Life Healthcare.

The Health Professionals Board of South Africa, the Board of Healthcare Funders and the Hospitals Association of South Africa (Hasa) also attended.

After the meeting, Hasa chief executive Kurt Worrall-Clare told reporters that stakeholders were keen to hold the indaba by September in order to resolve the industry issues quickly.

Worrall-Clare said he believed the health minister had the discretionary power to legislate on any aspect of health that might need her intervention.

A task team will be set up next week to prepare an agenda and proposal for discussion for the indaba. — Sapa