A Snapshot of Some (Uncontrollable) Hospital Cost Drivers

Healthcare inflation around the world generally outpaces headline inflation by between 2-3%, yet between 2003 – 2013, South African healthcare inflation came in at 0.81% (excluding medical scheme inflation). Hospital prices are generally in line with headline inflation despite a number of outliers out of their control, like nursing salaries which are set in the public sector, a considerable weakening of the Rand/$ exchange rate which has pushed up even further the costs of medical technology (an already increasing expensive item), and electricity prices. And then factor in hospital running costs. The infographic below sets out the struggle private hospitals have to mitigate uncontrollable input costs.

Related Posts

Melanie Da Costa Appointed CEO at Netcare

Melanie Da Costa, past Hospital Association of South Africa Board member and Chairman, and a recipient of the Hospital Association of South African Lifetime Achievement

Leading Healthcare Forward: Insights From HASA Deputy Chairperson, Mark Bishop

South Africa’s healthcare system is under growing strain and incremental change will no longer be enough. Rising demand, escalating costs and capacity constraints in the

NHI On Hold, For Now

According to Anthony Norton, of Nortons Inc, who represented the Hospital Association of South Africa (HASA) in obtaining a significant order by consent, the National

Melanie Da Costa Appointed CEO at Netcare

Melanie Da Costa, past Hospital Association of South Africa Board member and Chairman, and a recipient of the Hospital Association of South African Lifetime Achievement

Leading Healthcare Forward: Insights From HASA Deputy Chairperson, Mark Bishop

South Africa’s healthcare system is under growing strain and incremental change will no longer be enough. Rising demand, escalating costs and capacity constraints in the