{"id":727128,"date":"2023-10-28T11:00:00","date_gmt":"2023-10-28T09:00:00","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=727128"},"modified":"2023-10-27T16:24:30","modified_gmt":"2023-10-27T14:24:30","slug":"medical-aid-crunch-in-south-africa-as-private-hospitals-suffer","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/lifestyle\/727128\/medical-aid-crunch-in-south-africa-as-private-hospitals-suffer\/","title":{"rendered":"Medical aid crunch in South Africa &#8211; as private hospitals suffer"},"content":{"rendered":"\n<p>Independent hospitals in South Africa face a series of problems as South Africans increasingly turn to public healthcare facilities. <\/p>\n\n\n\n<p>\u201cThis is especially true for those situated in communities most in need. Despite providing essential services, these facilities are often in a precarious position, battling market pressures and operational challenges that threaten their sustainability,&#8221; Heather Orton from EY South Africa&nbsp;said. <\/p>\n\n\n\n<p>Orton noted that independent hospitals do not have the benefit of economies of scale, competitive rates, and prime locations that attract top specialists, unlike their larger counterparts. <\/p>\n\n\n\n<p>\u201cThe struggle is twofold: they must continuously innovate to serve communities effectively while ensuring they remain financially viable, \u201cshe added. <\/p>\n\n\n\n<p>\u201cThese hospitals are grappling with high inflation and consumer affordability issues, with medical aid costs escalating beyond standard inflation rates. <\/p>\n\n\n\n<p>&#8220;This economic strain alters how people approach their healthcare, <strong>driving an increasing number to rely on public healthcare due to the dwindling affordability of medical aids<\/strong>.&#8221;<\/p>\n\n\n\n<p>\u201cThe rise in gap cover insurance is a telling sign of the times, as more people find certain medical procedures out of reach, leading to an increased dependence on public hospitals.&#8221; <\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-wp-embed is-provider-businesstech wp-block-embed-businesstech\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"wp-embedded-content\" data-secret=\"NLHLEOnuSS\"><a href=\"https:\/\/businesstech.co.za\/news\/trending\/721150\/discovery-announces-price-hikes-for-2024-heres-how-much-more-youll-be-paying\/\">Discovery announces price hikes for 2024 \u2013 here\u2019s how much more you&#8217;ll be paying<\/a><\/blockquote><iframe loading=\"lazy\" class=\"wp-embedded-content\" sandbox=\"allow-scripts\" security=\"restricted\" style=\"position: absolute; clip: rect(1px, 1px, 1px, 1px);\" title=\"&#8220;Discovery announces price hikes for 2024 \u2013 here\u2019s how much more you&#8217;ll be paying&#8221; &#8212; BusinessTech\" src=\"https:\/\/businesstech.co.za\/news\/trending\/721150\/discovery-announces-price-hikes-for-2024-heres-how-much-more-youll-be-paying\/embed\/#?secret=ca5uLKeZ2W#?secret=NLHLEOnuSS\" data-secret=\"NLHLEOnuSS\" width=\"500\" height=\"282\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\"><\/iframe>\n<\/div><\/figure>\n\n\n\n<figure class=\"wp-block-embed is-type-wp-embed is-provider-businesstech wp-block-embed-businesstech\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"wp-embedded-content\" data-secret=\"cyFx1jnUqt\"><a href=\"https:\/\/businesstech.co.za\/news\/lifestyle\/721484\/momentum-medical-aid-changes-for-2024\/\">Momentum medical aid changes for 2024<\/a><\/blockquote><iframe loading=\"lazy\" class=\"wp-embedded-content\" sandbox=\"allow-scripts\" security=\"restricted\" style=\"position: absolute; clip: rect(1px, 1px, 1px, 1px);\" title=\"&#8220;Momentum medical aid changes for 2024&#8221; &#8212; BusinessTech\" src=\"https:\/\/businesstech.co.za\/news\/lifestyle\/721484\/momentum-medical-aid-changes-for-2024\/embed\/#?secret=DKalD2Adr9#?secret=cyFx1jnUqt\" data-secret=\"cyFx1jnUqt\" width=\"500\" height=\"282\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\"><\/iframe>\n<\/div><\/figure>\n\n\n\n<p>Amidst this shift, private hospitals have had to focus on specialised areas like paediatrics and ICU, as many also try to manage a decline in revenue streams through strategic changes, such as cost optimisation and improved supply chains. <\/p>\n\n\n\n<p>Although digital healthcare systems are being used by larger providers, this is difficult for smaller community hospitals where technological advancement differs significantly. <\/p>\n\n\n\n<p>In addition, attracting top talent is difficult for smaller hospitals as competition is fierce with centrally-located hospitals. <\/p>\n\n\n\n<p>The industry also lacks coordination, often resulting in price dismicrimation amongst independent hospitals. <\/p>\n\n\n\n<p>Overall, the market size for independent hospitals is dropping substantially, <strong>as public healthcare dependency has risen from 72% to 85% in recent years due to the affordability crunch.  <\/strong><\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p><strong>Read<\/strong>: <a href=\"https:\/\/businesstech.co.za\/news\/lifestyle\/727044\/insurers-now-insist-on-two-tracking-devices-as-hijacking-claims-skyrocket-in-south-africa\/\" target=\"_blank\" rel=\"noreferrer noopener\">Insurers now insist on two tracking devices as hijacking claims skyrocket in South Africa<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>South Africa&#8217;s independent hospitals &#8211; especially those for communities in need &#8211; are facing major headwinds. <\/p>\n","protected":false},"author":95,"featured_media":642499,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9876],"tags":[7955,26],"class_list":["post-727128","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-lifestyle","tag-ey","tag-headline"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/727128","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/95"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=727128"}],"version-history":[{"count":10,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/727128\/revisions"}],"predecessor-version":[{"id":727868,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/727128\/revisions\/727868"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/642499"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=727128"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=727128"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=727128"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}