Estimating the Financial Cost of the NHI Plan

| February 2010 | Type: |

In the previous Econex NHI Notes we dealt with certain of the main issues raised by the ANC NHI proposal. This final note is a culmination of the information gained from the research conducted on aspects such as supply constraints, changes in demand and utilisation, issues of rationing, burden of disease, etc. In this note we calculate the overall cost of implementing a plan with the essential features of the current NHI proposal. It is shown that the resources required for such a plan exceed the available human and physical capacity of our current health system and will put enormous strain on the fiscus.