Health Minister Dr Aaron Motsoaledi says the Fee-For-Service method of paying for healthcare, must be eradicated. Motsoaledi says South Africa is one of the two countries that still pay cash for healthcare services in the world.

He says other ways of accessing healthcare must be explored.

Motsoaledi was speaking at a media briefing in Johannesburg following the Competition Commission’s Healthcare Market Inquiry.

“The World Health Organisation said you are the same, you are outlying because you are doing what other countries are not doing, meaning relying mostly on cash and private medical aids to pay for health. They said it is untenable and unsustainable. That’s why some of us are so intent on NHI now. That paying cash for health is the main driver of volume and cost inflation and do away with it as much as you can and look for other alternative reinvestment mechanisms.”

Motsoaledi says the high medical costs in the private healthcare sector should be blamed on the lack of regulation. He says there are plans to set up an interim board to regulate the supply chain in this sector.

Motsoaledi says billions of rands are spent on administrators in the private healthcare sector rather than being spent on patients.

“We believe we can set up an independent supply chain regulator for healthcare because treasury has told us very clearly that they will never countenance the formation of a three public entity because those that are there are actually establishing them.”

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