SOUTH AFRICA TO CUT GOVERNMENT HOSPITAL FEES

The South African government has agreed to cut fees at local state hospitals by between 50% to 70%, amid growing controversy over healthcare costs. Earlier this year, the cost of outpatient fees was raised to ZAR70 (US$10.75) -- especially expensive for people suffering from chronic or long-term illnesses. Under the new system, the set fee will be just ZAR35 (US$5.37).

The move came after an outcry by both patients and doctors, who claimed that in some instances costs in the state sector had overtaken those for private medical care. For example, the cost of a 15-minute consultation in a public hospital had spiralled to ZAR235 (US$36.10), compared to a figure of ZAR156.4 (US$24.02) for the private-sector equivalent.

However, despite recent efforts to support more affordable private health packages only 7mn of South Africa's workforce of 29mn currently have private medical insurance and the figure is remaining static.

From the point of view of pharmaceuticals marketers, the public sector remains a key access point for much of South Africa's population. Nevertheless, leading local players will hope that existing supplies of antiretrovirals and chronic disease therapies will be adequate enough to meet a likely growth in demand.