Netcare Issues Stark Warning on NHI: Private Sector Still Key to South Africa’s Health Future

South Africa’s largest private hospital group, Netcare, has once again sounded the alarm over the National Health Insurance (NHI), calling for greater collaboration between the public and private healthcare sectors to make universal healthcare a reality.

In its interim financial results for the six months ending 31 March 2025, Netcare emphasized that the country’s health system remains deeply unequal and fragmented — and reform must include input from those already providing quality care.

“We believe that a collaborative partnership between the public and private sectors is essential to developing sustainable and affordable solutions that advance the goal of universal healthcare,” said Netcare.

This statement comes less than a year after President Cyril Ramaphosa signed the NHI Act into law in May 2024, a move that sparked controversy across the medical industry and has led to legal challenges from multiple stakeholders, including the Board of Healthcare Funders (BHF), the South African Medical Association, and the South African Private Practitioners Forum.

While government insists the NHI is the solution to decades of healthcare inequality, critics — including Netcare — argue that excluding private sector expertise and infrastructure would lead to collapse, not cohesion.

Mounting Legal and Financial Concerns

Despite ongoing court battles, Health Minister Joe Phaahla published the first draft of the NHI regulations in March 2025, opening them up for public comment over a three-month period.

Yet, confidence in the NHI’s viability remains low.

Legal victories for groups like the BHF have already started to roll in — a High Court judge recently ruled that Ramaphosa’s signing of the Act is subject to review and demanded that he provide written justification.

The biggest concern, however, is funding. Estimates suggest that implementing the NHI could cost between R900 billion and R1.3 trillion. Even more conservative figures still place the need at R250 billion annually — a staggering ask from a government that has struggled to push through a mere 1% VAT increase.

The Department of Health disputes these figures, but has also made clear that the NHI will not provide care at the same level as the private sector — further muddying the vision and purpose of the scheme.

Netcare’s Financial Results Show Resilience

Despite the uncertainty in the healthcare sector, Netcare’s operations have shown resilience.

• Revenue for H1 2025 rose 5.3%

• Operating profit increased by 10.7%

• Patient volumes saw a marginal 1.1% increase, largely due to calendar timing shifts (Easter and school holidays)

The company also continued to deliver on its capital return strategy:

• R604 million used to repurchase 45.9 million shares

• Interim dividend of 36.0 cents per share, representing 61.2% of adjusted HEPS

Time for Cooperation, Not Conflict

Netcare’s latest warning isn’t about rejecting universal healthcare — it’s a plea for partnership. Without the private sector’s resources, experience, and infrastructure, the NHI may fall short of its noble goals.

“Netcare remains committed to constructive engagement and stands ready to work in partnership to meaningfully reform and strengthen South Africa’s health system.”

As the NHI debate enters its next chapter — in courts, parliament, and public consultations — South Africa’s healthcare future may depend less on ideology and more on cooperation.

{Source: BusinessTech}

Follow Joburg ETC on Facebook, Twitter , TikTok and Instagram

For more News in Johannesburg, visit joburgetc.com