Health Minister Reveals R228 Billion Lost to Private Sector Corruption, Calls for Action

Health Minister Dr. Aaron Motsoaledi exposes R228 billion lost to private sector corruption, prompting investigations into medical aid fraud, inflated prices, and fraudulent medico-legal suits. He calls for collective action to ensure quality healthcare for all. In a candid interview with “Business Report,” Health Minister Dr. Aaron Motsoaledi revealed that over R228 billion is being lost to corruption within the private healthcare sector. This startling figure encompasses medical aid fraud, inflated prices for medical procedures and supplies, and fraudulent medico-legal claims against the state. The revelations follow Motsoaledi’s budget vote speech in Parliament, where he addressed the persistent issues of corruption, poor management, and dilapidated infrastructure within the healthcare system.

Motsoaledi emphasized that while corruption in the public sector is well-documented, the private sector is equally culpable. “Are we saying corruption does not happen in the private sector? It is happening on both sides. It is up to us as South Africans how we get rid of it. I am told more than R228 billion is lost in the private sector,” he stated. He stressed that it is the responsibility of South Africans to tackle this issue head-on to ensure quality healthcare for everyone, especially the underprivileged.

The Health Minister disclosed that the government’s anti-corruption forum had already presented preliminary findings, and a detailed report from the Special Investigating Unit (SIU) is still pending. This initiative aims to cleanse the healthcare sector, scrutinizing incidents from the Covid-19 era and addressing widespread corruption in medico-legal litigation, which he described as a major drain on resources. “Many believe it is the carelessness of the doctors, but quite a large amount of it is fraud. We need the unit to look into that,” he stressed.

Additionally, Motsoaledi highlighted the alarming trend of unnecessary Caesarean sections, which he argued are financially motivated, reducing doctors’ attendance time and increasing their earnings. He emphasized that the implementation of the National Health Insurance (NHI) is already in progress, drawing parallels with the UK’s ongoing adjustments to its healthcare system, initiated in 1948. “We have started with improving the health register so that a patient’s file can be accessible anywhere in the country, whether it is a public or private facility. We have initiated a public-private partnership in the Free State and we will move on from that,” Motsoaledi said.

Despite the progress, implementing the NHI faces hurdles, including legal challenges from several NGOs and opposition from the Democratic Alliance (DA), which has labeled the scheme as “problematic.” Motsoaledi acknowledged the disparities in South Africa’s healthcare spending, which currently stands at 8.5% of GDP but lacks equitable distribution, leading to inefficiencies. He pointed out that only 14% of the population, approximately 9 million people, benefit from medical aid, while the public healthcare system and fiscus bear the burden when these individuals deplete their medical aid and seek care in the public sector.

“There is the wrong assumption that people who qualify to use the private sector go away. The same people we pay to go away come back in September or so when they have exhausted their funds, and they want the same public health sector to provide services to them,” Motsoaledi explained. He further revealed that the government spends R70 billion directly to subsidize public servants’ healthcare and an additional R30 billion in tax rebates, intended as incentives for private sector usage. “These are incentives for people to go away, but they still come back,” he added.

Motsoaledi’s call for comprehensive action against corruption and for the successful implementation of the NHI underscores the urgent need to reform South Africa’s healthcare system, ensuring that it serves all citizens effectively and equitably.