New Research Study delves into Critical Success Factors required for Successful Implementation of National Health Insurance

Port Elizabeth, 17 April 2014 - A new research study conducted by NMMU Business School delved into the critical factors required for the successful implementation of a National Health Insurance (NHI) system in South Africa.  Around 233 managerial representatives participated in the study.  

The study highlighted that:

• The majority of the respondents believed that the upgrading of public hospitals would be a key factor for the success of NHI  
• More than half of the respondents did not believe NHI would address human resource shortages in the public hospitals and clinics  
• Over 50% of respondents also believed that NHI would not strengthen the governance structures and accountability mechanisms in the public health system    
• Participants believed that public sector leadership would be a barrier for the successful implementation of NHI  
• In addition, respondents thought that the NHI would not be a financially sustainable initiative, believing instead it would place a financial burden on South African taxpayers 

Respondents felt that the South African government was not effectively communicating the vision and mission of the proposed plan for NHI to stakeholders in medical and healthcare sectors.

“The empirical results of the study revealed that the projected benefits for stakeholders, especially medical aid funds, are very important for the successful implementation of national health insurance,” said NMMU Business School MBA graduate Dr Gareth Cortje, the researcher of this study.

Dr Cortje further said that the findings of the study, conducted under the supervision of Prof Cecil Arnolds, the Research Director of the NMMU Business School, indicated that more stakeholder engagement needs to take place from government with the health and medical sector around medical aid schemes against the framework of national health insurance.

In fact, the study showed that the NHI would be unsuccessful for two reasons. The first being insufficient communication and consultation with industry stakeholders, while the second was a lack of formal reassurances from government that the NHI would be profitable and sustainable for medical aid schemes.

The results also showed that, for NHI to be successful, the private sector would have to be incentivized.  Two kinds of incentives, tax rebates and continued professional development (CPD) points, were highlighted as examples.  

“It is imperative for government to increase efforts in convincing and demonstrating to stakeholders in healthcare industries that competent, administratively efficient and transparent leadership development is taking place to ensure the success of its plan for national health insurance,” said Dr. Cortje.

“Strategic leadership from the government is critical for the success of the NHI. The government should also increase efforts to effectively communicate the vision and mission of the proposed NHI to all healthcare providers and stakeholders. Government should continuously consult with stakeholders on the merits and shortcomings of its plan for NHI. By doing this, more buy-in for the NHI will be secured fostered,” said Dr. Cortje.