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Weighing up hospital costs

ALL private hospitals charge the RAMS tariff and two of the better-located Medi-Clinic hospitals make a small surcharge, says Dr Edwin Hertzog, chairman of Medi-Clinic.

On average, hospitalisation costs R1 200 a day and the average patient's bill is about R3 500, excluding doctors' fees. Day clinics charge about 90% of 24-hour hospitals.

Managed-care companies seeking preferred-provider agreements with hospital groups need to take everything into consideration, such as geographic spread, quality and range of services and availability and reliability of information. Cost is only one factor.

"It is very difficult to measure value for money," says Hertzog, "because it has to be gauged against the future quality of life enjoyed by the patient."

Hertzog says it is too soon to say which hospitals provide better service.

RAMS tariffs for private hospitals have climbed by 4.5% in 1996, 5% last year and 8% this year.

Hertzog says the state licenses new private hospitals. There are now 150 in South Africa and he does not expect many more to be granted.

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