Private hospitals have disputed claims that they make exorbitant profits.
”The private hospital sector … offers the lowest returns on invested capital in the healthcare chain system,” the Hospital Association of South Africa said on Monday.
Chief executive Kurt Worrall-Clare said the profitability of a business could not be evaluated by looking at its income alone.
The balance sheet of assets and liabilities and how these were funded should also be considered, he told reporters in Johannesburg.
These included a 14% tax private hospitals had to pay, the cost of financing investments and rental charges.
The private sector was also cross-subsiding the state’s purchase of pharmaceuticals, Worrall-Clare said.
The fees of private hospitals came under the spotlight earlier this month when several private hospital groups proposed sharp fee increases.
Netcare, Life Healthcare and the National Hospital Network were among those that proposed ward and theatre fees hikes of between 8% and 33% for this year.
They also sought increases in the cost of anaesthetic gases by as much as R13 a minute.
These were in addition to general tariff increases of up to 10%.
Health Minister Manto Tshabalala-Msimang has come out strongly against the proposed increases, threatening legal action.
This prompted some hospital groups to suspend their increases pending the outcome further talks with the minister.
Worrall-Clare said on Monday: ”We don’t know how long that will take.”
He said the current power cuts would also push up expenses for hospital groups.
”We are going to need more money to pay our staff members for overtime. When the we regain power, the people who were going to perform surgery have to be available no matter what time it is.”
Medi-Clinic Southern Africa — in a separate statement — contended its average annual tariff increase was in line with consumer inflation.
Chief executive Koert Pretorius the group also had talks with the minister on concerns.
This process of engagement was continuing, he said. — Sapa