Nghiinomenwa-vali Erastus
Health commodities in Namibia are still pricey and unaffordable to ordinary citizens despite several developments in the sector and increases in the number of public and private health facilities in the country.
In fact, since 2005, the increase in health facilities, professionals and the introduction of various technologies in the sector only pushed up the cost of health commodities in the country.
According to a report by the Namibia Competition Commission (NaCC) and United Nations Development Programme (UNDP), the cost to receive private healthcare in Namibia increased by 320% between 2005 and 2021.
For example, in 2005, the average beneficiary on a medical scheme spent just over N$5,395.71 annually on all medical benefits.
By 2021 this has increased to around N$21,449.54 per year, a 298% increase in costs.
The largest chunk of cost is seen in hospitals (35%), followed by pharmaceuticals (16%), and specialists (11%).
This is despite the increase in the number of private healthcare facilities in the country during the same period – a scenario which was expected to saturate the demand for private healthcare and in turn bring down the cost.
Currently, there are 890 private hospitals and clinics registered and operating in Namibia, according to the report, with private healthcare facilities “predominantly serve those who are insured through medical schemes, health insurance products and an insignificant number of the population who pay out of pocket.”
They are served by 72% of the doctors in the country and just marginally below 50% of registered nurses who work in the private healthcare sector.
Those who access private healthcare represent less than 18% of the population with medical aid insurances.
However, although medical aid companies have been raking in significant profits year in year out, the report by NaCC states that it is “unclear how it benefits the members.”
In terms of cost pull and push factors, the annual medical aid fund premium increases are not significantly determined by administration fees.
Instead, the increases have been attributed to costs such as doctors’ costs, technology enhancements, over-utilisation, facilities and medication.
These services are however beyond reach to more than 80% of the population – low income earners and unemployed – who depend on public hospitals which have been limping with lack of medical supplies and professionals over the years.
The country’s competition watchdog says it has received several complaints of irregularities in the private healthcare sector over the years.
These complaints raised relate to anti-competitive practices which may impede competition and increase the cost of healthcare services.
It was against this background thatNaCC Commissioners established the need for the Secretariat to conduct a study to understand the structure and provision of private healthcare in the country with a specific focus on analysing the cost trends over the years.
The focus of the study is to understand competition issues within the Private Healthcare Sector in Namibia.
According to NaCC, the private healthcare system must have three main attributes, the first being that: “it must be accessible to all citizens – rich, poor, young, old, the sick, the relatively healthy, the employed, and the unemployed as well as the marginalised.”
This is, however, not the case in Namibia as only 18% of the population is covered by medical aid insurance and therefore have access to private healthcare.
Private medical aids only cover 8%, with the trends showing more pensioners.
NaCC’s Chief Executive Officer Vitalis Ndalikokule highlighted that in a market where anti-competitive behaviour exists, markets are unable to function properly.
This leads to great inefficiencies in the sector, having the impact of excessive pricing, low quality of products and services, and a limited choice of products and services on offer.
“With the health sector’s importance to the economy, such inefficiencies have far-reaching consequences not only for the consumers of health services but also for the country’s wider developmental goals and objectives,” Ndalikokuleadded. Email: erastus@thevillager.com.na
