Medical practitioners table plan to use claims surplus to stave off bankruptcy
South African Private Practitioners Forum CEO Dr Chris Archer says private medical associations and other stakeholders have come together and proposed a framework which they believe will protect practices from bankruptcy and assist the government in combating COVID-19 - providing a national response.
Archer says that private doctors have experienced a 50 to 60 percent decline in the number of patients that they see, because of fears around the pandemic and that this has caused financial distress.
Private doctors only earn money in return for providing a service and because the number of patients coming to see private doctors has reduced by between 50 and 60 percent, their practices are severely distressed financially.Chris Archer, CEO - South African Private Practitioners Forum
In order to find a mechanism to assist the state in combating the virus and also protecting practices from bankruptcy, we started looking at a way at which the private sector from its own resources find a way of combating this virus.Chris Archer, CEO - South African Private Practitioners Forum
We are trying to find a solution that does not utilise state funds and we believe we have found a solution through the medical aid system.Chris Archer, CEO - South African Private Practitioners Forum
What's happening at the moment is medical schemes are receiving contributions from their members, in a normal situation that money would be paid out against claims but because claims are not happening, there is a surplus accumulating within the medical scheme industry.Chris Archer, CEO - South African Private Practitioners Forum
What we are proposing is that we will use that money ... turn it into a capitation fund with a limit based on the payments made in 2019.Chris Archer, CEO - South African Private Practitioners Forum
Click on the link below to hear details on the plan....
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