Government is naive or dishonest to say more health funding via the proposed NHI will improve the condition of state hospitals
Government is naive or dishonest to say more health funding via the proposed scheme will improve the condition of state hospitalsCosmos Clinic is shown at Cosmos City, west of Johannesburg, in this file photo. Picture: ANTONIO MUCHAVE
Business Day asserted in a recent editorial opinion that the government is either naive or dishonest to argue that more health funding via its proposed National Health Insurance will magically fix the parlous condition of state hospitals .Given the magnitude and sweeping reforms demanded by the NHI proposal, it is necessary to emphasise just how naive or dishonest the government is.
This means that as the population of Gauteng has ballooned, so too has the province’s proportion of the national health budget. The latest, March 2022, financials of the provinces show Gauteng’s share of the total health budget at 25%, almost equal to Gauteng’s population share in the 2020 midyear population estimates, from which the 2022 health budget appropriation would have been calculated.
Measured in real, per capita terms, from 2000 to 2020 SA’s national public health budget doubled in value, a result of annual budget allocations over that period that exceeded both population growth and general inflation. So even when factoring in the rising national population and inflation, the government now has twice the health funding it had two decades ago. This stands in stark contrast to the perpetual narrative that public health problems are caused by underfunding.
The state’s overall medical liability of R119bn in 2021 was restated downwards to R91bn due to a change in the provisioning method at the start of the 2022 financial year, but it nonetheless still incurred an additional R10bn in new liabilities in 2022 and paid out R8bn in awarded claims.
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