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National Health Act to meet health care costs

The Department of Health is to introduce an amendment to the National Health Act to ensure transparency and fairness in the negotiation of hospital tariffs.

The announcement was made by Health Minister Dr Manto Tshabalala-Msimang on Thursday during a follow-up meeting aimed at discussing the challenge of increasing private health care costs.

She met with representatives from the private hospital industry and medical schemes.

“You have all indicated at the private sector indaba that you want government to take the lead and requested that a legislative and regulatory framework is put into place to promote transparency in the pricing system, I have taken this advice very seriously,” the minister said during the meeting.

She said the principles that the amendment will deal with are to ensure transparent negotiation fee for services and in determining costs, ensuring removal of conflicts inherent in price setting including cost containment and accountability for the cost of health care.

The initial draft of the amendment Bill covering the financing of private health will be discussed by the National Health Council including Health MECs on Friday before tabling it in Cabinet.

Minister Tshabalala-Msimang further announced that the department will within next month be submitting the Medical Schemes Amendment Bill to parliament.

The Amendment Bill will focus on establishing Risk Equalisation Fund, restructuring of the benefit options, improved corporate governance of Schemes and facilitating affordable products for low income beneficiaries

She urged both private hospitals and medical schemes to make input into the two legislative processes adding that at the end of the day they will all achieve the principles they hold dear, a quality health system that is affordable to all.

The minister also welcomed the efforts made by some of the private hospital groups to adjust the tariff increases for 2008 towards the Consumer Price Index.

“As we move forward let us find solutions that meets the expectations of the general public, that health care is made affordable and that private health sector services are not systematically made exclusive only for those with reasonably high incomes,” said Minister Tshabalala-Msimang.

Article published courtesy of BuaNews

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