The recent gazetting of South Africa's National Health Insurance (NHI) Act 20 of 2023, without an implementation date, has thrown the healthcare sector into a state of uncertainty. Here are some key takeaways:
What is the Aim of the NHI?
The NHI Act aims to centralize healthcare services in South Africa and ensure equitable access to healthcare. Currently, private healthcare is considered to be significantly better than public healthcare, but only 20% of South Africans have access to private healthcare. The NHI seeks to bridge this gap by ensuring that all South Africans receive high-quality healthcare, regardless of race or economic status
Key Components of the NHI Act
Establishment of the NHI Fund:
- The NHI Act authorizes the creation of an NHI Fund, a Benefits Advisory Committee, and a Healthcare Benefits Pricing Committee. These bodies will determine the services the NHI will offer and fund, as well as the relevant pricing. Medical schemes cannot offer the same services that NHI covers.
Registration and Contracting:
- Healthcare companies wishing to offer services will need to register and contract with the NHI Fund. However, the criteria for how suppliers will be selected remains unclear.
BBBEE Impact:
- While there is no clear indicator that Broad-Based Black Economic Empowerment (BBBEE) will be a factor in partnering with the NHI, historical context suggests that partners will be expected to create jobs, develop healthcare professionals through skills development, and contribute to healthcare-related socio-economic issues.
- These outcomes are directly related to BBBEE and transformation, indicating that BBBEE is likely to remain a requirement for partner companies, even if it may be given a different name.
Despite there being no set implementation date for the NHI, aligning your existing BBBEE efforts with NHI objectives is a prudent business planning and risk aversion strategy. This proactive approach will enhance your company's readiness for when the implementation date is eventually set.
Contact our team if you would like to set up a quick meeting to
- Inquire about the NHI and its potential impact on BBBEE strategies
- Learn how to build or optimize your BBBEE plan to include healthcare business objectives and outcomes
- Discover how to align all transformation strategies, including BBBEE, Diversity & Inclusion (D&I), and Environmental, Social, and Governance (ESG) for a sustainable and impactful plan
- Leverage low-cost, high-impact transformation strategies in your BBBEE plan