Money crisis for hospitals, staff highlights NHI folly

27 September 2024

The Gauteng Health Department’s budget deficit that hampers the construction of new hospitals is clear evidence of the government’s inability to plan for healthcare.

Solidarity believes there can no longer be any doubt in anyone’s mind about the South African government’s inability to manage an even more extensive public healthcare system. This is because even the current system is collapsing due to lack of planning.

Theuns du Buisson, economic researcher at the Solidarity Research Institute (SRI), says what the Department of Health and the provincial departments are experiencing now is just the realisation of a reality that they have denied for far too long.

“There is no money for new hospitals, and there is no money to renovate the old hospitals. Without these hospitals, the National Health Insurance (NHI) will not be viable, and even if the institutions were built and renovated, there would also be no money to implement and manage the NHI.

“It is baffling to think the government cannot meet their current health obligations, but they still want to implement the NHI Act which will more than double such obligations,” Du Buisson said.

Solidarity knows it is imperative to get public hospitals operational, regardless of the choice of healthcare system. According to Du Buisson, it is therefore essential to wish the Gauteng Health Department all the best with any sincere efforts to improve healthcare.

“However, it is important that the department’s and the government’s actions should be in accordance with reality, and this means that they should recognise that the NHI is in no way feasible. This is something that is emphasised by the current state of affairs,” Du Buisson said.

The public healthcare system is also characterised by severe staff shortages, and limited budgets also prevent any progress in this regard.

Peirru Marx, coordinator of Solidarity’s medical networks, said the following: 

“The circumstances are terrible, and medical staff are no longer interested in working for the state. We are tired of hearing about doctors who want to help people and provide services, but who are unemployed or sitting at home.

“They are the ones who then seek alternatives abroad, and our research confirms this. Now, on top of that there are budget deficits, which clearly shows how patient care is not a priority for the government.

“This is the government that now wants to manage a much bigger healthcare system,” Marx said.

Solidarity will present its alternative to the NHI soon, in which an upgrade of the current system and a full repeal of the NHI Act are proposed.

According to Solidarity, universal healthcare is a necessity, and yet it must be possible to fund it in a fair and realistic manner, while the NHI is neither fair nor realistic.

Issued by Theuns du Buisson, Economic researcher: Solidarity Research Institute (SRI), 27 September 2024