Publications
Partners
Cape Town - Finance Minister Pravin Gordhan’s 2011 budget will allocate R112bn to health.
This represents a 9.8% slice of the total R577.3bn social services expenditure, and includes measures to lay the foundations for the proposed national health insurance (NHI) scheme.
While total spending on public health services has increased strongly over the past three years, from R63bn in 2007/08 to R113bn projected for 2012, Gordhan conceded that the NHI plan came with significant cost implications and would require substantial organisational and financial reforms.
The government, he said, was considering all options on how to fund this system.
Some of the options include a payroll tax (payable by employers), an increase in the VAT rate and a surcharge on individuals’ taxable income.
“The fiscal and financial implications of health system reform, and alternative revenue sources, will be examined in the year ahead," Gordhan said.
The phasing in of the NHI, Gordhan stressed, will require substantial reforms to address “imbalances across the public and private sectors” and expand health professional training.
During a press conference with journalists before delivering his speech, Gordhan was at pains to emphasise that the government was not rushing into the NHI without weighing up all the options and without overhauling the way in which the current system operates.
“We are quite open about the fact that we have not done well and we need to do better. The NHI then is one component to make sure people can afford health services," he said.
"The minister of health will soon publish a policy paper for consultation. We are looking at the costs of moving over a 14-year period and of having NHI as a key component of the health system. We will not do it today or tomorrow,” said Gordhan.
In addition to provision for higher personnel expenditure over the period ahead, Gordhan added about R8bn in other specific health service interventions which pave the way for the NHI. These include:
• R1.2bn to introduce family healthcare teams;
• R2.9bn to improve quality in health facilities, medical equipment and hospital systems;
• R1.4bn for improved district-based maternal and child health services;
• A new Office of Standards Compliance to inspect and certify hospitals will include an inspectorate and an ombudsman (R117m);
• Funding for the department of health to lead the necessary institutional and management reforms;
• Revitalising health infrastructure, including a new infrastructure grant for provinces;
• Expanding capacity to train medical doctors and nurses; and
• R2.7bn to improve the quality of care in hospitals.
This represents a 9.8% slice of the total R577.3bn social services expenditure, and includes measures to lay the foundations for the proposed national health insurance (NHI) scheme.
While total spending on public health services has increased strongly over the past three years, from R63bn in 2007/08 to R113bn projected for 2012, Gordhan conceded that the NHI plan came with significant cost implications and would require substantial organisational and financial reforms.
The government, he said, was considering all options on how to fund this system.
Some of the options include a payroll tax (payable by employers), an increase in the VAT rate and a surcharge on individuals’ taxable income.
“The fiscal and financial implications of health system reform, and alternative revenue sources, will be examined in the year ahead," Gordhan said.
The phasing in of the NHI, Gordhan stressed, will require substantial reforms to address “imbalances across the public and private sectors” and expand health professional training.
During a press conference with journalists before delivering his speech, Gordhan was at pains to emphasise that the government was not rushing into the NHI without weighing up all the options and without overhauling the way in which the current system operates.
“We are quite open about the fact that we have not done well and we need to do better. The NHI then is one component to make sure people can afford health services," he said.
"The minister of health will soon publish a policy paper for consultation. We are looking at the costs of moving over a 14-year period and of having NHI as a key component of the health system. We will not do it today or tomorrow,” said Gordhan.
In addition to provision for higher personnel expenditure over the period ahead, Gordhan added about R8bn in other specific health service interventions which pave the way for the NHI. These include:
• R1.2bn to introduce family healthcare teams;
• R2.9bn to improve quality in health facilities, medical equipment and hospital systems;
• R1.4bn for improved district-based maternal and child health services;
• A new Office of Standards Compliance to inspect and certify hospitals will include an inspectorate and an ombudsman (R117m);
• Funding for the department of health to lead the necessary institutional and management reforms;
• Revitalising health infrastructure, including a new infrastructure grant for provinces;
• Expanding capacity to train medical doctors and nurses; and
• R2.7bn to improve the quality of care in hospitals.
