NHI Could Put SA Back R200 billion

The NHI could cost South Africa R200 billion This after a report regarding the feasibility of NHI was released by Econex.

The latest report regarding the feasibility of introducing a National Health Insurance scheme to South Africa has dealt a further blow to those in the government who are keen to get the idea up and running already.

Econex, the economics consultancy firm, issued a report showing that the NHI would set South Africa back as much as R216 billion.

"The cost is enormous relative to what we can afford," noted the director of Econex, Dr. Nicola Theron.

The report was commissioned by the Hospital Association of South Africa.

The NHI's main objective is to provide universal health and medical coverage to all South Africans.

However, Econex pointed out that even a 'cheaper' version of the NHI - one that costs just under R200 billion - would still cost the government what it makes from the country's entire personal income tax contribution.

The lack of resources and manpower would also make the current proposed model inconceivable, said Theron.

"We found that in the face of potentially unlimited demand, we would need an additional 10,000 GP's and between 7,000 and 17,000 specialists relative to what we currently have," she said.

Should universal health cover be made available to all South Africans, it is estimated that there could be a 180% increase in visits to specialists - a number that the country cannot support right now.

"NHI is doable - we just cannot do everything in a day," said the more optimistic senior economist and director or Econometrix, Tony Twine. "A progressive, phased introduction will allow resources to be deployed economically."