Care costs now up for scrutiny

Consumers are one step closer to finding out why private healthcare costs rise above inflation every year.

Last week, legal action that has slowed down the Competition Commission inquiry into private health-care costs came to an end when Netcare's request to interdict consulting firm KPMG from doing work for the commission was denied.

Johannesburg High Court Judge Elias Matojane's judgment read: "The Competition Commission's advocate argued, correctly in my respectful view, that it seems Netcare will keep secret and withhold from the commission relevant documentation instead of voluntarily disclosing the information if it is not identified by KPMG."

The judge said Netcare needed to disclose voluntarily any information needed by the inquiry.

"The only irreparable harm that Netcare it seems might suffer is that the truth might leak out irregularly," Matojane said.

He said information that Netcare possessed about hospital pricing and costs could be subpoenaed.

The hospital group reacted to the judge's ruling by saying: "Netcare reiterates that its court action was not about delaying the inquiry or withholding any information."

Netcare had argued that KPMG had done work for the group before and there was therefore a conflict of interest.

The Competition Commission inquiry is headed by retired Constitutional Court Judge Sandile Ngcobo and will address the cost structures of the private healthcare industry.

A fortnight ago the probe asked for submissions on costs from interest groups.

NGO Section 27 lawyer Umunyana Rugege said: "We are pleased the commission can now carry out the inquiry. It will unearth information that will help decision-makers understand what leads to costs."

Netcare said it would continue to engage with the panel as the inquiry unfolds.