health amendment bill to create transparency
06 June 2008
 
“The primary intention of the Bill is to create transparency and not to fix prices, the funders and services providers such as private hospitals will still engage and determine the price particularly for the Prescribed Minimum Benefits,” said Minister Tshabalala-Msimang.

The minister was addressing the representatives of the private health sector during a meeting on Saturday, as part of the process of several engagements on the Bill, which has been tabled before Parliament.  In a meeting, the stakeholders including Hospital Association of South Africa, Netcare, Medi-Clinic, Life Health Care and the National Hospital Network, requested that the Bill be withdrawn because they view it as setting prices for the industry.

The industry argued that the Bill is a price setting legislation. Minister Tshabalala-Msimang explained that the department views the Bill as creating a regulatory framework through which the prices are negotiated as it happens in many developed countries. She said the Bill provides for a transparent process through which funders and providers of health services can negotiate and determine the prices with the assistance of an independent facilitator appointed through public nomination.

The National Health Amendment Bill is a proposal from the department aimed at achieving as a minimum transparency on the costs forming the basis for prices and removal of conflicts inherent in the current price setting framework. The Bill also seeks to prevent unjustified cost escalations and unfair, collusive and undesirable business practices. Both parties agreed that the parliamentary process would be used to make further input into the finalisation of the Bill and that Parliament will make final determination on the passing of the Act.

Gabi Khumalo, www.buanews.gov.za