For many investors, the notion of investing capital in the healthcare sector, particularly in hospitals, is counterintuitive. After all, a glance at the 10-year share price performance of South African giants Netcare and Life Healthcare paints a rather grim picture. Both stocks peaked roughly a decade ago, a period characterised by institutional investor pressure for global diversification and a desire…
Category: May 2025
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NHI Legal Challenges cost Health Department R9.7 Million in Fees
The Department of Health has incurred a substantial legal bill, spending R9.7 million since October 2023. This was to defend legal challenges against its flagship National Health Insurance (NHI) Act and the existing National Health Act. Health Minister Aaron Motsoaledi revealed the figures to MPs yesterday. This was in response to a question posed by Democratic Alliance (DA) MP Michéle…
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RAF CEO Placed on Leave pending SIU Tender Probe
The Road Accident Fund (RAF has announced that its Chief Executive Officer, Collins Letsoalo, has been placed on special leave. The RAF CEO’s special leave decision by the RAF board comes as the Special Investigating Unit (SIU) continues its probe into multimillion-rand contracts and tenders. These investigations focus on financial dealings at the embattled fund. A Precautionary Measure during SIU…
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Are New Cancer Treatments Worth the Price?
A significant number of cancer drugs approved since 2000, as reviewed by Bloomberg News, have never been definitively shown to extend patient survival for their approved uses. This raises questions about the growing cost of cancer treatments. The landscape of cancer treatment has been revolutionized over the past three decades, with over 200 new cancer drugs greenlit by the US…
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Liberty Insurance Claims: R12 Billion Paid Out
Life insurer Liberty announced that it paid out a substantial R12 billion in death, disability, and income protection claims to over 120,000 beneficiaries throughout 2024. This impressive figure reflects the volume of Liberty insurance claims processed last year. The statistics shed light on evolving claiming patterns. There is a concerning underinsurance gap among women and a notable increase in claims…
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US Drug Prices Have More Than Doubled Since 2021
The cost of newly-launched pharmaceuticals in the United States soared in 2024. Median annual list prices of US drug prices more than doubled compared to 2021. A Reuters analysis highlights that this sharp increase is attributed mainly to companies leveraging significant scientific advancements. This has developed more treatments for rare diseases, which traditionally command high prices. The median annual list…
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Zimbabwe Health System: Urgent Government Measures
The Zimbabwean government is launching a series of urgent measures aimed at stabilizing the nation’s public health system. The Zimbabwe health system is currently grappling with significant challenges, including medicine shortages and under-equipped hospitals. Health and Child Care Minister Dr. Douglas Mombeshora confirmed the interventions. These include fast-tracking the procurement of essential medicines, earlier disbursement of allocated funds, and strengthening…
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Private Hospitals Brace for Muted Growth Amid Economic Squeeze
LEADING analysts are cautious about the growth trajectory for South Africa’s private hospital sector. They cite stagnant medical aid membership figures, a declining healthcare workforce, and a persistently challenging macroeconomic environment as key headwinds. This week, Netcare and Life Healthcare, two of the nation’s largest private hospital groups, reported earnings growth for the six months ending in March. However, Netcare…
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Medical Scheme Solvency Issues Impacting Members
Three medical aid schemes – Medihelp, Sizwe Hosmed Medical Scheme, and Transmed Medical Fund – did not maintain their medical scheme solvency ratios at or above the statutory minimum of 25% in 2023. This was a key finding in the Council for Medical Schemes (CMS) Financial Performance Industry Report 2023, released last week. While the total number of medical aid…
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HIV Crisis: Impact of US Aid Cuts on Treatment
South Africa’s hard-won gains against the ongoing HIV crisis and AIDS are facing a perilous new challenge following significant cuts to US funding. These cuts have sparked fears of a resurgence in infections and deaths. Health Minister Dr Aaron Motsoaledi, once lauded for his decisive action against the epidemic, is now under intense scrutiny for his response to the escalating…
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NHI Sparks Alarm and Calls for Healthcare Reform
The looming implementation of the National Health Insurance (NHI) Act is casting a long shadow over South Africa. NHI sparks alarm among critics who are expressing profound concern over its viability. This is particularly due to the well-documented struggles within the existing public healthcare system. Fears are mounting that the ambitious plan could decimate private medical schemes. However, it might…