South Africa currently runs a two-tiered healthcare
system, comprising of the public and the smaller,
rapidly -growing private sector. The country spent
9% of its GDP on healthcare in 2017, which is 4%
higher than the WHO’s recommended spending for
a country of its socioeconomic status.
high expenditure, health outcomes are still trailing
in comparison with similar middle-income countries,
mostly due to the inequities between the public
and private sectors. To eliminate this inequality,
the government is in the process of implementing
National Health Insurance (NHI) to establish
universal healthcare. This coverage will provide the
population with required healthcare and financial
protection to all citizens.
The NHI seeks to establish a fund – the National
Health Insurance Fund – to act as a public entity
governed by the Public Finance Management
Act. The fund will be a single public purchaser
and financier of health services in the country, to
ensure “equitable and fair distribution” and will be a
mandatory pre-payment health services system.