Adrian Gore, the CEO of the Discovery Group, has expressed strong reservations about the National Health Insurance (NHI) bill, labelling it as flawed and asserting that its implementation would likely take decades.
His critical remarks come in the wake of President Cyril Ramaphosa’s announcement of plans to sign the legislation into law, a decision that has sparked significant concern and criticism from various quarters.
Gore emphasized that the NHI bill, in its current form, is riddled with significant flaws and would inevitably face numerous legal challenges, leading to prolonged delays in its implementation.
[ President Cyril Ramaphosa Signs NHI Bill Into Law | WATCH LIVE ]
He highlighted the need for private-sector collaboration, underscoring the vital role it would play in the realization of comprehensive and workable universal healthcare.
Additionally, he pointed out the complexity and enormity of the initiative, emphasizing the extensive planning and preparation required before its execution.
One of the primary concerns raised by Gore pertains to the funding of the NHI.
He underscored the absence of a concrete funding plan and highlighted the challenging economic circumstances, including constrained fiscal position, low economic growth, and a narrow tax base, which would pose significant obstacles to securing the necessary funding for the NHI.
The announcement of President Ramaphosa’s intention to sign the NHI bill into law had a substantial impact on Discovery’s share price, leading to a significant decline of approximately 7.4% in afternoon trade.
The share price experienced a notable drop over the last seven days, declining by 8.45% in intraday trade. However, it exhibited a partial recovery, trading at around R109.47 on the morning following the announcement.
Discovery and Gore are not the sole critics of the NHI bill. Business Unity South Africa (BUSA) also voiced its apprehensions, expressing concern over the substantive and procedural constitutional flaws inherent in the bill.
The organization contended that the current form of the legislation renders it unimplementable and detrimental to the healthcare sector, the broader economy, and investor confidence.
CAS Coovadia, the CEO of BUSA, reiterated the support for the objective of universal health coverage while condemning the unworkable, unaffordable, and constitutionally incongruent nature of the NHI bill in its present state.
He further expressed dismay at the decision to proceed with the bill despite extensive constructive inputs from a diverse array of stakeholders, including healthcare professionals, civil society, public sector unions, academics, and business entities.
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