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Sun May 26 10:40:14 SAST 2013

SA healthcare costs up to five times more than other nations'

Sapa | 02 August, 2012 09:13
A doctor holding a stethoscope.

Medical costs in South Africa are up to five times higher than other nations.

Department of Health head of pricing Anban Pillay said the cost of hospitalisation for maternity was US3000 (R24,605) while the average cost in Organisation for Economic Co-operation and Development (OECD) countries, comprising mostly developed nations, was US2750 (R22,554), according to The Business Report.

However, when the cost was adjusted for purchasing power, other countries only paid about US500 (R4100).

Pillay said the purchasing power estimate was based on the entire South African population's affordability levels. However, even if it was adjusted to include only those with medical schemes, it would still not come close to the average of OECD countries.

"Clearly, the prices in South Africa are much higher that the affordability level," Pillay said. "Even if you adjust it to the wealthiest person in the country, it will still be higher."

He said private sector pricing could be reformed based on costing information in the public sector.

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