NHI to not end private healthcare in South Africa, President assures

President Ramaphosa praised South Africa's private health sector for its world-class expertise and significant domestic and foreign investment.

President Cyril Ramaphosa has dismissed concerns that the National Health Insurance (NHI) will end private healthcare in South Africa. In his weekly newsletter on Monday, the President emphasized that the NHI aims to leverage the strengths of both the private and public health sectors to create a unified, quality health system for all citizens.

The NHI Fund will procure services from accredited providers in both sectors, ensuring healthcare access for everyone in need. Ramaphosa highlighted that the NHI will be particularly beneficial for millions of poor South Africans, allowing them to allocate their resources to other essential needs. Additionally, it will reduce the financial burden on those paying increasing medical aid premiums for diminishing services.

President Ramaphosa praised South Africa's private health sector for its world-class expertise and significant domestic and foreign investment. He also lauded the public sector's numerous centers of excellence and skilled personnel. Despite differing opinions on the NHI's implementation, the President argued that the current healthcare system is unsustainable and inequitable, disadvantaging both the poor and the middle class.

With careful planning, oversight, and strategic resource allocation, Ramaphosa believes that South Africa can achieve universal health coverage (UHC). He called for collaboration between the public and private sectors to make quality healthcare accessible to all.

This statement comes as South Africa moves closer to affordable healthcare for all, following the President's signing of the NHI Bill into law last week. Currently, 84% of the population relies on public health facilities, while 16% use medical schemes for private healthcare access. A small percentage uses both.

Ramaphosa pointed out that this disparity perpetuates inequality, with healthcare quality determined by financial means, which contradicts the country's goal of a just and equal society. He emphasized that achieving social justice, efficiency, and better resource allocation are key objectives of the NHI.

The President clarified that the challenge in implementing the NHI lies in resource misallocation rather than a lack of funds. He noted that the private healthcare sector benefits significantly from state subsidies for training healthcare personnel, public sector medical aid schemes, and tax rebates for medical expenses amounting to approximately R37 billion annually.

Ramaphosa argued that the state indirectly funds a private healthcare sector that serves only a minority, and access to private healthcare through medical aids remains costly. He cited the 2016 Healthcare Market Inquiry, which found that private healthcare services and medical scheme coverage are often over-used without corresponding health outcome improvements.

In conclusion, Ramaphosa stressed that the resources spent by the state and private individuals could be more efficiently used to build a single, inclusive healthcare system that serves the entire population.