28 January 2010

Healthcare Analysts Examine Effects of NHI on SA

Frost and Sullivan has examined the effects of NHI
Frost and Sullivan has examined the effects of NHI
They believe that there is a uncertainty in the SA healthcare industry.

While the ANC government's plans to propose universal health cover for all the country's citizens looks good on paper, the truth is that without proper planning, transparency and partnership with existing health care platforms, the plan is doomed to fail.

Healthcare analysts, Frost and Sullivan examined the government's new plans and believe that the impact of the NHI on South Africa's medical industry could be enormous.

"The mention of the NHI has led to uncertainty in the industry," noted analyst, Lizelle Wentzel. "A lack of transparency as to how the system will work has caused speculation and assumptions being made by various role players in order to forecast the impact of the changes on their businesses."

Nobody will be left unaffected by the expected changes in the healthcare industry, ranging from insurance groups to medical schemes, hospital groups and others.

However, even the finest analysts cannot make correct predictions without some type of clarification about how the structure of the planned National Health Insurance will be.

"Frost and Sullivan believes that the private hospital groups will be co-opted into the NHI in one way or another, which implies that they will see more patients through their doors," said Wentzel. "However, we also expect the NHI to add further pressure on prices, so margins will be squeezed."

The hardest hit, believe the analysts, will be medical aid schemes who are already impacted by rationalization.

Overall, the group believes that the longer the government holds out on concrete information for South Africans to understand how the new system works, the more pressure the current healthcare services will be under, causing them to seek revenues in international markets - which in turn will have a detrimental affect on the South African market.





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Story Highlights »
  • Clarification is the key, believe Frost and Sullivan.
  • Everyone involved in the healthcare industry will be impacted by the NHI.

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