Netcare CEO Richard Friedland proposed a “Mandatory Cover for the Formally Employed” scheme as an alternative to South Africa’s National Health Insurance (NHI). This plan aims to reduce the public healthcare burden, extend coverage, and boost economic growth while addressing unemployment.
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BizNews Reporter
In an interview with BizNews editor Alec Hogg yesterday (September 3), Netcare CEO Richard Friedland discussed a potential alternative to the National Health Insurance (NHI) bill that could alleviate the financial burden on South Africa’s public healthcare system.
Dr Richard Friedland, Ms Melanie Da Costa and Dr Biancha Mentoor wrote a detailed document proposing a “Mandatory Cover for the Formally Employed” scheme, which they argue is a more feasible and affordable option compared to the NHI.
Read Dr Richard Friedland’s speech “Viable and near-term opportunities to providing enhanced healthcare in South Africa” here:
When questioned by Hogg about the potential impact on small businesses, who might struggle with the added expense of providing medical aid for employees, Friedland acknowledged the concern. However, he emphasised that solutions exist to mitigate this burden, ensuring that the costs are kept lower than those projected under the NHI framework. He pointed out that improved healthcare has a proven positive impact on the economy by reducing absenteeism and promoting overall well-being, which in turn can drive economic growth.
Friedland highlighted South Africa’s severe unemployment crisis, with rates exceeding 32%—among the highest in the world. He stressed that tackling unemployment is essential to making ambitious healthcare reforms like the NHI financially viable without crippling the economy. His proposed scheme, he argued, would require a more limited funding envelope and would be a fraction of the cost to taxpayers compared to the NHI.
One of the key advantages of Friedland’s proposal is its potential to extend healthcare coverage to a significant portion of the population. Currently, only 9.2 million South Africans have formal healthcare coverage. The “Mandatory Cover” proposal could increase this number to 27.5 million, covering nearly half of the country’s population. This shift would relieve the government from having to provide healthcare for 85% of the population, reducing the burden to around 58%.
Friedland also pointed out that this approach could significantly increase the per capita healthcare spending on the indigent and unemployed, raising it from approximately R5,000 to around R7,600. This increase would bring substantial improvements to the public healthcare sector, including reduced waiting lists, decreased overcrowding, and enhanced infrastructure. Furthermore, the additional funds could be used to fill vacant healthcare positions and invest in training more nurses and doctors—a critical need in South Africa.
The Netcare CEO emphasised the importance of collaboration between the public and private sectors to achieve a sustainable healthcare system. He urged the government to act quickly, arguing that a viable solution is needed now rather than in the distant future. Friedland’s proposal, rooted in legislation considered from the ANC over two decades ago, offers an immediate alternative to the NHI, one that he believes could deliver tangible benefits to South Africa’s healthcare system and economy.
As the debate over the NHI continues, Friedland’s “Mandatory Cover for the Formally Employed” presents an alternative that seeks to balance the needs of both the public and private sectors while addressing the pressing issue of unemployment.
Watch the original interview with Richard Friedland here:
TRIBE VIBE on the NHI alternative:
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