Shaun Harris
Durban - The private healthcare industry, with private hospitals and specialists at the top of the hit list, have known further government regulation is on its way.
Health Minister Manto Tshabalala-Msimang removed any doubt about that on Monday morning - the private sector will be regulated.
Tshabalala-Msimang was opening the Board of Healthcare Funders conference in Durban. While further regulation seems inevitable, with the minister saying the general consensus at the Indaba she convened last September was "that government needs to regulate the private sector to ensure transparency in pricing", Tshabalala-Msimang denied proposed legislation would see her setting tariffs in the industry.
"In the past few months there has been much criticism of this legislation (an amendment to the National Health Act), arguing that (it) allows for the Minister of Health to set tariffs in the industry. This is far from the truth and does not in any way reflect the objectives and intentions behind our introduction of the Bill.
"The National Health Amendment Bill introduces a framework for tariff determination which involves a facilitator, co-ordinating the collective negotiations on tariffs."
The minister said the objective of introducing the bill was to promote transparency and limit unfair business practices in the determination of health service tariffs.
This might allay general concern that various medical fees, including specialist fees, were going to be capped by government.
She added she had been unfairly accused of focusing on private healthcare providers while ignoring that medical schemes had also been increasing their contributions and that broker fees were also adding to the cost spiral in the private health sector.
"On numerous occasions I have categorically stated that there are three key cost drivers in the private health sector, namely private hospitals, specialists and administrative costs including broker fees.
"The challenges of the cost spiral among private hospitals and specialists will be effectively dealt with through the introduction of the National Health Amendment Bill."
That's where increased regulation is likely to come in, though in just what form is not yet clear.
Some legislation to support the proposed National Health Insurance scheme have been implemented, including the single exit price regulations that had a significant effect on pharmaceutical companies.
Responding to criticism that she should "put my own house in order",Tshabalala-Msimang also made it clear she was not only Minister of the public health sector.
"I would like to remind these critics that as the Minister of Health I am responsible for the entire health system so my stewardship responsibilities cut across both sectors."
It's perceived though that the minister seems far more concerned with the private sector, especially the fact that it treats far less people on larger funding than the public sector.
That private healthcare is largely private business enterprises does not seem to come in to the argument.