Health report shows ‘major challenges’

Material losses of R269m incurred due to revenue write-offs

THE Western Cape Department of Health suffered material losses to the tune of R269 million, impairment allowances amounted to R238m and close to R70m was underspent. Health MEC Nomafrench Mbombo presented her department’s annual report, and although they achieved most of their targets, major challenges were highlighted.

Auditor-General Kimi Makwethu’s report on the department indicated material losses of, and an increase in, the impairment allowance.

“The financial statements indicated material losses of R269m (R290m in 2016) were incurred as the result of a write-off of irrecoverable accrued departmental revenue. Accrued departmental revenue was significantly impaired. The impaired allowance amounted to R238m (2016: 228 million),” the report read.

Beth Engelbrecht also said the department ended the 2016/17 financial year with a surplus of R89.58m.

“The surplus is the net effect of the over recoveries for the year. We have already been in talks with the provincial treasury to have these rolled over. They normally accede to our requests,” Engelbrecht said.

Just more than R70m of the surplus was due to claims paid by medical aid schemes and the Road Accident Fund in respect of patient fees, she said.

The material losses were a direct effect of bad debt that had to be written off, she said.

“It is clear that in these tough economic circumstances people simply cannot pay for the health services,” she said.

According to the figures there was no unauthorised expenditure.

“An amount of R7 000 was incurred for fruitless and wasteful expenditure in the current financial year,” she said.

ANC MPL Maurencia Gillion accused the department, like others, of sugar-coating its annual report.

“This report is glossed over and is anything but a true reflection of reality. Our people are dying on the roads, our paramedics are scared to go into gang-ravaged communities. They are constantly on sick leave or at psychiatric evaluations because they are traumatised. The loss of these workers has a negative impact on the people. Our people are going to die,” she said.

Mbombo said the department had acknowledged that it could not deliver quality healthcare without the help of private partners.

“Strengthening public-private partnerships is crucial in ensuring that we receive assistance to deliver the much-needed services required by our clients. The forum aims to build the relationship between the department and bring about solutions that will alleviate service pressures on the public health system,” she said.

Mbombo also said that while the department’s clean audit outcomes meant very little for communities, it would strive to maintain its solid record.