THE health sector charter on black economic empowerment (BEE) has come a long way since Health Minister Manto Tshabalala-Msimang released a draft last year calling for 51% of private healthcare assets to be in black hands by 2014.

The private healthcare industry complained that not only were these targets double the department of trade & industry's (DTI) guidelines, but that the industry had not been properly represented in the negotiations.

Following an industry-wide meeting with the department in November last year, which resulted in far greater industry participation in the drafting process, there was a feeling of greater comfort among industry players and optimism for a positive outcome.

The charter process is still the subject of negotiations and the finalisation of the DTI's broad-based BEE codes, which were due to be presented to the cabinet in mid-August.

It is unlikely that the health charter will be concluded before the end of September.

A recent draft of the health charter leaked to the FM shows that the ownership target has been brought in line with the DTI's guideline of 25,1% by 2014.

By that date, half of a healthcare company's executive board of directors is also expected to be black as well as 60% of its senior managers.

Half these employees should also be women. These employment equity targets are also extended to healthcare professionals such as doctors and nurses.

The charter proposes that firms unable to meet BEE ownership targets pay 2,5% of their post-tax profits to a public health enhancement fund.

In this way the profits of private healthcare companies, but more especially those of large multinational drug companies, which cannot sell equity locally, will be tapped to pay for the rehabilitation of public healthcare facilities and for the training of public healthcare workers.

The closest any other sector charter comes to such a provision is the financial sector charter, which encourages the banking sector to extend services to previously disadvantaged communities.

In healthcare, the industry generally agrees with the department that issues of equity and ownership are no more important than improving people's access to healthcare and raising the quality of that care.

In fact, labour and civil society have said they're interested only in broad-based BEE to the extent that it will enhance access, quality and equity - especially within the public health sector.

The draft health charter proposes a range of other tax deductions from private companies:

• The payment of 5% of post-tax profits towards enterprise development;

• The allocation of 3% of payroll to skills development; and

• The allocation of 1,5% of post-tax profits towards corporate social investment.

However, Health Department director-general Thami Mseleku says people tend to get so wrapped up in targets and percentages that they do not see the bigger picture.

"The bigger picture is about investing in the health sector - not only money. It is about investing in it psychologically, devoting intellectual and physical effort to it," he says.

"The charter is not so much about the redistribution of wealth as it is about the redistribution of health, so that those who do not have even the most basic health services can see a difference in their lives," says Mseleku.

"It's about co-operative effort to more efficiently and effectively utilise resources."