Speaking at the Nedbank CIB-organised healthcare conference held on 16 May 2024, Bosman noted that, given the sector’s role in the government’s economic development agenda, its growth will require not only policy and regulatory certainty but also innovation, collaboration, and a commitment to equitable healthcare for all South Africans. 

“Our healthcare sector is one of the largest and fastest-growing industries, and this growth is pivotal as we witness transformative changes, particularly with the impending National Health Insurance (NHI), which signals a critical moment in our nation’s healthcare journey. However, we must recognise the challenges that lie ahead. Implementing the NHI brings a number of questions around funding, administrative efficiency, and addressing existing disparities. The ambitious goal of universal healthcare is noble, but we must navigate a myriad of complexities to achieve it,” Bosman says.

She says a key concern is the 200,000-bed shortfall, which leaves the healthcare goals in a precarious position, with investors hesitating to commit without fiscal uncertainties. Another pressing question is how to finance the proposed universal healthcare’s hefty annual price tag of at least R200 billion. 

On infrastructure spending, Bosman says currently, only 3% of the government’s health budget is spent on infrastructure, in stark contrast to the 6% of the revenue the private sector allocates to maintenance alone. “On paper, South Africa is an attractive prospect for healthcare infrastructure investment, and we need to bring investors. A balanced approach is imperative - one where those who can afford private healthcare do so, while those who cannot rely on a robust, state-supported system,” Bosman says. 

Bosman says Nedbank CIB recognises the inefficiencies and friction within the healthcare system and is committed to being part of the solution. “Beyond financial products, we want to collaborate, innovate, and drive positive change. We aim to harness this conference’s power to forge new partnerships, share insights, and collectively shape a healthier future,” she concludes.

Speaking at the conference, Barry Childs, Joint CEO of Insights Actuaries & Consultants, says while there are concerns about the NHI, there is no need for people to panic, as its implementation will not be done overnight owing to several legal, administrative and regulatory changes and challenges to be overcome. He described the NHI Bill as the most complicated legal change since 1994 and an extraordinary massive undertaking by the government. “I think it will be a long time before anything changes,” he says. 

Childs also says the healthcare sector has the potential to be innovative and adopt new technologies. However, he adds that the sector is also defensive and will continue to grow.

Discovery Health CEO Ronald Whelan told the conference that the NHI will not affect medical aid schemes. “We are confident and comfortable that medical schemes are not going anywhere in the long term, if not forever,” he says.