R121 million financial meltdown should see Compensation Fund partly privatised
6 April 2016
We note with grave concern the court case of the Radiology Society of South Africa (RSSA) trying to claim back R121 million from the failing Compensation Fund, of which Department of Labour Minister, Mildred Oliphant, has played an absent and vacant role in improving the delays and non-payouts of the fund.
The DA believes, in line with our policy that it is high time the government listened and privatised the medical aid portion of the fund to an external administrator in the private sector that runs medical schemes around the country, such as discovery, Fedhealth, Medihelp, etc.
To this end I will be writing to Minister Oliphant, as the as the Minister overseeing the Compensation Fund to seriously contemplate the charges brought against her by the RSSA and to act in a manner that seeks to improve the Compensation Fund, both for workers and medical practitioners, by privatising the Compensation Fund to arrest the continuous financial meltdown. The Fund must better cater to the needs of so many workers who work tirelessly to contribute to our economy at times even risking their lives.
The DA conducted research into the Fund last year with the assistance of the South African Medical Association (SAMA), National Employers Association of South Africa (NEASA), Independent Practitioners Association Foundation (IPAF) and Qualicare. The significant finding was that many doctors and medical practitioners are not being paid for treatment and care given to injured workers. Some of these medical practitioners had been waiting for close to a decade to receive the amounts due to them. Click here to see research.
The solutions proposed by the new Compensation Fund Commissioner, Vuyo Mafata, of recruiting its own doctors and nurses to assess patients is entirely unnecessary, and will take much needed doctors and nurses away from treating patients in the private and public sector pushing them to do admin aimed at bailing the Compensation Fund out of its administrative and financial crisis.
We note also that the Radiologist Society of SA, among many others, have made it clear that the Umehluko electronic claims system is not solving the administration crisis in the Fund and is not increasing the turnaround time for claimants. After spending more than R2 billion on many other IT options over the years, it is clear that merely implementing a new software system is not going to solve the problem.
Privatising the administration of the fund will put the fund in the hands of a professional operation such as a competent medical aid company, with a proven track record at administrating members benefits. This will save the tax payer money for computer systems and will ensure efficient collection and payments.
Issued by Ian Ollis, DA Shadow Minister of Labour, 6 April 2016
