The government is considering new regulations to address longstanding inconsistencies in healthcare pricing.
The Department of Trade, Industry, and Competition (DTIC) has proposed a temporary block exemption to standardize tariff determination, aiming to reduce costs and improve affordability in the sector. This move comes after more than two decades without formal tariff regulation, leading to fragmented negotiations between healthcare funders and providers.
According to the source article, while the National Health Insurance (NHI) Act was signed into law last year, its full implementation remains pending. In the meantime, the DTIC stresses the need for immediate price relief to correct inefficiencies and disparities in healthcare costs.
The proposed exemption would allow collective tariff negotiations and the standardization of diagnostic codes, treatment protocols, and quality metrics across both Prescribed Minimum Benefits (PMBs) and non-PMBs. If approved, the exemption will last for three years under the oversight of the Department of Health, in consultation with the Council of Medical Schemes.
However, the proposal has sparked concerns, particularly from the Board of Healthcare Funders (BHF). As reported by Business Day, the BHF fears that the Department of Health’s role in managing tariff negotiations could be used to justify keeping private healthcare costs high in support of the NHI. They argue that the Competition Commission should instead allow medical schemes to negotiate tariffs directly with healthcare providers to lower costs.
Public comments on the gazette are open until 14 March 2025.
While the exemption aims to create a smoother transition to the NHI framework, debates continue about its long-term impact on pricing and government oversight in private healthcare.
Comments on the gazette must be submitted to the DTIC by 14 March 2025 and emailed to Dr Ivan Galodikwe, IGalodikwe@thedtic.gov.za
Extract from Government Gazette
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The Department of Trade, Industry and Competition gazetted proposals for a block exemption from certain sections of the 1998 Competition Act for the healthcare sector, calling for public comments. It is expected that, once in force, the exemption will facilitate access to ‘affordable, quality healthcare services’ across schemes with prescribed and non-prescribed minimum benefits. This by reducing costs and discouraging the ‘overutilisation of healthcare services’.
To that end, the proposed exemption allows the collective determination of:
o healthcare service tariffs
o standardised diagnosis, procedure, medical device and treatment codes
o quality measurements/metrics
o medicine ‘formularies’, and
o treatment protocols/guidelines.
-End Quote-
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