DA: Health debt causing operational crisis

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Published Jan 31, 2012

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Debt owed to the National Health Laboratory Service (NHLS) by provinces is escalating and causing an operational crisis, the DA said on Tuesday.

“(This is) causing an operational crisis in the health system's ability to process diagnostic tests, including tests related to HIV and TB (tuberculosis) nationally,” Democratic Alliance MP Mike Waters said in a statement.

“The Democratic Alliance understands that many laboratories have already closed down and training has come to a complete halt in an effort to save costs as the NHLS awaits payment from KZN (KwaZulu-Natal) and Gauteng.”

Waters said the lack of payment from the two provinces was placing the viability of the NHLS in jeopardy nationwide.

The KwaZulu-Natal health department owed R1.06 billion to the NHLS and Gauteng owed R709.4 million, he said.

The combined R1.77bn amounted to 82 percent of the R2.17bn owed by all provincial health departments.

“This is a national disaster for our healthcare system, which is being held to ransom as a result of bad financial management in select provinces.”

Gauteng health department spokesman Simon Zwane said the department was working on paying back its debt to the NHLS.

“We have acknowledged our debt with the NHLS and we have a payment arrangement with them and are servicing our debt.

“We have a plan in place to pay all our service providers and NHLS falls into that plan,” said Zwane.

KwaZulu-Natal health department spokesman Chris Maxon said the department was in the process of paying back its debt to the NHLS.

“We are currently paying, as per interim agreement with NHLS, R43m a month.

“The amount they are indicating is in dispute and the minister has appointed a judge to mediate on the amount in dispute,” said Maxon.

The DA called on Health Minister Aaron Motsoaledi to hold the provincial health MECs accountable for the state in which they had put South Africans.

“If KwaZulu-Natal and Gauteng paid their bills on time, the NHLS would not be facing this challenge and our health system would not be in this mess,” said Waters. - Sapa

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