Neelam Rahim | neelam@radioislam.co.za

3-minute read
11 March 2025 | 12:27 CAT

Experts warn that a fragmented approach to healthcare reform may hinder progress toward universal access. (Photo – iStock)

A critical debate has emerged over the government’s reluctance to implement comprehensive healthcare reforms, following its decision to cherry-pick minor recommendations from the five-year-old Health Market Inquiry. Experts warn that this fragmented approach will do little to address the soaring costs of private healthcare or the persistent failures of the public health sector.

The Universal Healthcare Access Coalition, an alliance representing a majority of South Africa’s healthcare professionals and funders, has strongly opposed the move, arguing that it falls short of meaningful change. This comes in response to Trade, Industry, and Competition Minister Parks Tau’s recent call for public comment on draft regulations aimed at facilitating tariff negotiations in the private healthcare sector.

Speaking to Radio Islam International, Dr. Aslam Dasoo, a member of the coalition’s steering committee, outlined the longstanding issues plaguing healthcare negotiations. “For decades, tariff negotiations between funders and providers in the private sector were halted due to competition laws. Now, the government wants to introduce selective regulations that do not address the core problems,” said Dr. Dasoo.

The situation is further complicated by the National Health Insurance (NHI) Act, which mandates a single-payer system combining public and private healthcare funding. “This model does not exist anywhere in the world where tax funding and private insurance contributions are merged into one entity,” Dr. Dasoo explained. “It requires a payroll tax hike of 7-8%, something that is financially unfeasible given the economic climate.”

Adding to the turmoil, the government’s failure to regulate the private sector has led to escalating costs, while public healthcare continues to deteriorate due to poor governance. “The public sector is collapsing, pushing more medical professionals into private practice, yet the private sector has not expanded in 20 years,” noted Dr. Dasoo.

Experts argue that without enabling legislation and a clear strategy for integrating public and private healthcare, these draft regulations will remain ineffective. “This is political posturing. If the government were serious about reform, it would implement the full set of recommendations from the Health Market Inquiry, not just selectively enforce politically convenient measures,” Dr. Dasoo concluded.

With lawsuits already filed against the NHI and multiple constitutional changes required to enforce the new policies, the future of South Africa’s healthcare system remains uncertain. Meanwhile, citizens continue to grapple with inadequate healthcare services and rising medical costs, with no clear resolution in sight.

Listen to the full interview with Moulana Ibrahim Daya and Dr Aslam Dasoo on Radio Islam International.