The intense debate around National Health Insurance (NHI) often dominates the news in South Africa. This focus has obscured a severe crisis within the private healthcare sector. The traditional funding model is under immense pressure. Private healthcare relies heavily on cross-subsidisation. Younger, healthier members pay premiums that fund the care of older, sicker individuals. This system only functions when enough…
Tag: healthcare economics
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Investing in Hospitals: A Risk Worth Taking
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…