FMF NEWSLETTER 3 April 2019

03 April 2019
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FMF NEWSLETTER 3 April 2019   
 
ARTICLE of the week  

The NHI: Analysis from a public choice perspective MPIYAKHE DHLAMINI

The NHI is set to be South Africa’s version of universal healthcare where resources are pooled in order to provide health services for everyone. Apart from the many flaws in the manner in which it is being implemented, a most serious flaw is that it is going to be prohibitively expensive. Scant attention has been paid in the South African public discourse to the structure of the proposed system and the problems inherent therein.

The NHI is a single-payer system where the government would be the sole purchaser of health services on behalf of all South Africans. The government would be responsible for certifying healthcare providers from both public and private providers. It is also envisioned that supply and demand-side measures would be implemented, presumably, to contain the economic effects that will arise from having zero prices on the demand side of the equation.

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