THE government is again busy with a plan to set up a structure that will determine the prices that should be charged by service providers in the private healthcare sector. It is reported that Health Minister Aaron Motsoaledi wants to establish an independent commission that will look at pricing in the sector with the aim of regulating charges. Motsoaledi is said to have told the Board of Healthcare Funders that he was asking the Competition Commission to consider exempting medical schemes from the Competition Act until such a commission was in place. Two years ago, the former Health Minister, Manto Tshabalala-Msimang, published the National Health Amendment Bill which had the same objective - to regulate pricing in private healthcare. But Tshabalala-Msimang's move did not receive the warm reception given to Motsoaledi's suggestion. The industry was up in arms, threatened court action and accused her of interfering. Eventually, it was announced that the National Health Amendment Bill would not be adopted because the government was focusing on introducing a national health insurance scheme. The Hospital Association of SA said it welcomed engagement and looked forward to discussing the matter with Motsoaledi. The thorny issue with Tshabalala-Msimang's proposal was that she would have the final say on the prices charged. Motsoaledi's idea would probably be different to that of his predecessor, but the objective is still the same - to regulate pricing in the healthcare sector. So, was the industry fighting against the principle or the person, Tshabalala-Msimang?

Slindile Khanyile: Business Watch: Business Report, 26 May 2010