Business Day

The 2024 budget hints at a pragmatic approach to NHI

- Yugen Pillay ● Pillay is public sector head at BDO SA.

As the impending National Health Insurance (NHI) Bill looms large on SA’s political horizon, it’s critical that we take a pragmatic approach to its implementa­tion.

President Cyril Ramaphosa’s remarks during his state of the nation address, finance minister Enoch Godongwana’s 2024 budget and the palpable urgency within government structures to use the bill for its electionee­ring indicate a swift progressio­n towards its enactment.

However, we must not overlook the daunting constraint­s that accompany such a monumental undertakin­g. The NHI bill represents more than just a healthcare reform bill; it ’ s a symbolic assertion by the governing party of its commitment to tackle the nation’s healthcare disparitie­s. But amid the fervour surroundin­g it, we cannot afford to ignore the elephant in the room: the budgetary constraint­s that threaten to stifle its realisatio­n.

At the heart of the matter lies a simple yet important question: can we afford NHI? Despite its noble intentions, the stark reality is that our present fiscal landscape is ill-equipped to shoulder the financial burden it entails. With a burgeoning budget deficit, less-than-desirable growth and dwindling tax revenues, the prospect of financing NHI through convention­al means appears increasing­ly untenable.

In his 2024 budget speech, Godongwana set aside R1.4bn for the next financial year for the scheme. This reiterates the government’s intention to begin rolling out NHI, but to what extent? While some estimate NHI will cost R200bn in total, its true cost remains unknown. Then there’s the matter of the state of our healthcare services.

Consider that almost 800 qualified doctors are without jobs in the country due to the budget many constraint­s.’ So, more we ll require. even if we have the necessary facilities, we cannot even afford to place the doctors we have, let alone That’s not to mention the exodus of skilled medical practition­ers, which presents a further obstacle.

How can we hope to implement a comprehens­ive healthcare scheme when we lack the necessary workforce to sustain it?

Healthcare is the heartbeat of the nation, and there’s no point in having a system that doesn’t work, leading to a population that’s continuous­ly sick. That affects productivi­ty and the economy, creating a vicious cycle. So to navigate these challenges, we must adopt a multifacet­ed strategy that prioritise­s economic growth and human capital developmen­t.

Rather than rushing headlong into NHI implementa­tion, we should focus on laying the groundwork for its success. This entails devising a comprehens­ive budgetary plan, at least a threeyear phased implementa­tion strategy, and concerted efforts to retain our medical talent.

In his budget speech, Godongwana did identify several areas where NHI still needed to be developed before its rollout. This should provide some comfort as it indicates a realisatio­n by the government that in its current form SA cannot afford to fully implement the scheme. But what are some of the ways the country can better prepare itself for the inevitable rollout of NHI?

Crucially, we must engage with healthcare profession­als to understand their concerns and address the systemic issues driving their departure. By fostering an environmen­t conducive to their growth and developmen­t together with the Health Profession­s Council of SA (HPCSA), we can stem the brain drain and fortify our healthcare infrastruc­ture from within.

Furthermor­e, we cannot afford to overlook the invaluable expertise of senior specialist­s. Their mentorship and guidance are indispensa­ble in nurturing the next generation of healthcare profession­als and optimising the utilisatio­n of our existing resources.

Though the minister acknowledg­es that further developmen­ts are required before NHI can be rolled out at scale, the incoming seventh administra­tion — even if it is a coalition government — may be more aggressive in implementi­ng the scheme in a show to radically transform the health sector. That said, for now reason and logic prevail.

Ultimately, the success of NHI hinges not only on its legislativ­e passage but on the concerted efforts of all stakeholde­rs to deal with the underlying constraint­s and seize the opportunit­y to redefine the future of healthcare in SA.

It is incumbent on us all to rise to the occasion and ensure that the promise of universal healthcare becomes a reality for all South Africans, without compromisi­ng the fiscal integrity of our nation.

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