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National Health Act, 2003 (Act No. 61 of 2003)


National Health Insurance Policy towards Universal Health Coverage

Chapter 7 : Financing of NHI

7.7 Proofing of Revenue


252. NHI will be established as a single-payer and single-purchaser fund responsible for the pooling of funds and the purchasing of personal health services on behalf of the entire population74. To reduce fragmentation and to maximize income and risk cross-subsidisation, the NHI Fund will be a single national pool of funds that will be used to purchase personal health services The NHI Fund will be appropriately financed in order to be able to actively purchase personal health services for all who are entitled to benefit.


253. The NHI Fund will be publicly administered and the administration costs will be kept to a minimum. It will leverage its monopsony power to strategically purchase services that will benefit the entire population. Acting as a single-payer,75 the NHI Fund will be able to yield the efficiency benefits of economies of scale and ensure that incentive structures for healthcare providers are integrated and coherent. Pooling of financial resources will strengthen the NHI Fund’s purchasing power resulting in the reduction of costs of delivering personal healthcare services and expansion of the scope of personal healthcare services offered to the entire population.