Founder and CEO of Discovery Limited Adrian Gore has called for the scrapping of Section 33 of the National Health Insurance (NHI) Bill, declaring that without private sector participation government’s ambitions for universal healthcare will simply not be possible.

Gore, who was speaking at PSG Wealth’s Think Big webinar on Tuesday, acknowledged that although the state’s NHI aims are noble and needed, there just is no clear blueprint from the state on how it plans to achieve such a huge feat without a considerable contribution from the private healthcare sector.

Read: NHI: Government will need the private sector’s help

His comments are similar to sentiments expressed by other players in the industry.

“The key issue of discussion and debate is that the NHI is not workable without private sector collaboration, that’s our unequivocal point,” said Gore.

“We are completely supportive of it [NHI], the actual architecture of the NHI structure is something that is now enshrined in law. I think the issue to us is clear – when you look at the numbers, the funding, the complexity – it requires private sector collaboration. If that can be achieved, then the NHI Bill can be made workable,’ he added.

“So, I think our efforts now is to try and make that point clearly and try and make sure that the private sector is involved in the way forward,” he said.

Objections

Since passing the NHI Bill in June 2023, government has had to field an influx of objections from the private sector which has highlighted funding, governance and quality of healthcare concerns with the state’s plan should it be implemented in its current form. Medical aid schemes, in particular, have taken issue with being left from the bill.

This comes as Section 33 of the bill restricts medical aid schemes from “providing complementary cover for healthcare service benefits that are not purchased by the Fund on behalf of users”.

However, Gore has argued that in a decade from now – when the NHI is expected to begin taking effect – government’s plan as it currently exists will see a dramatic drop in the quality of healthcare on offer in South Africa, while burdening the already stretched taxpayers. This is expected to be especially the case should the country’s tax base continue to shrink, and the economy continue to register anaemic growth.

Read: Economic growth to weaken to 0.8% in 2023

“We are really advocating for freeing up Section 33 [of the NHI Bill] as it [stands]… Once it’s [the NHI] fully implemented, let’s then work out the role of the private sector and medical schemes,” Gore noted.

He added that just like how government decided to partner with the private sector in addressing the Covid-19 pandemic and subsequent vaccine crisis – and as it is currently doing with addressing the energy crisis and the country’s transport and logistics issues – the healthcare sector too should be brought into the fold of fixing healthcare.

Election populism

When asked how the election season – as the country gears up to vote for new leadership in 2024 – will affect government’s responsiveness to the industry’s calls, Gore countered by saying government may have a better chance with voters should it heed to the private sectors calls.

He said the private sector held greater credibility weight than arguably government does on its own.

Read/listen:
Biggest farce in the NHI charade is the funding story: Mavuso
NHI possibly 15 years away from implementation – Moneyweb
Is NHI the straw that will break Treasury’s back?
Discovery Health boss quits

“Research shows that the business sector is trusted by broader society. In many countries businesses are often seen in a negative light, but it is trusted by South Africans – not to say we don’t do bad things and there aren’t extreme [cases of] terrible behaviour.”

“But in the main, we are seen as a force for good, and therefore if that can be brought into this discussion in a constructive [way]…,” Gore added.

Read/watch: NHI plan will create another state monopoly, warns Wits professor