Healthcare and Pharmaceuticals
South Africa’s 58 million-strong population accesses healthcare through either the private or the public healthcare systems. The majority of South Africans uses public healthcare while the private healthcare industry has surged due to the many challenges faced in the public system. However, quality, private healthcare does come at a hefty price.
The South African healthcare and pharmaceutical industries face many challenges among them a declining economy which constrains consumers further, and an increase in healthcare prices.
Clarity is yet to be obtained on whether the NHI bill in its current form will achieve the goal of pooling funds to provide access to quality, affordable personal health services for all South Africans based on their health needs, irrespective of their socio-economic status.
It is also uncertain whether medical professional in the private sector will remain in South Africa after the implementation of NHI if they are not remunerated fairly, or whether citizens will choose to remain in South Africa if forced to use healthcare at the current standard of public healthcare facilities.
The future of the pharma industry sees advancements in artificial intelligence which will transform how medicine is prescribe, dispensed and administered. There is a growing shift towards a more patient-centric healthcare system which is driving digital transformation to see all players in the healthcare value chain working on the same network for the benefit of the patient.
The Covid-19 pandemic exposed our reliance on imported drugs for AIDS, TB, malaria, cancer and influenza. Not only are these imported medicines expensive, when there is a break in the supply chain due to something like a global pandemic, there are shortages of these critical drugs. In addition to ensuring supply at a cheaper cost, manufacturing locally would also create jobs and establish a new manufacturing industry.
BDO’s speciality in the healthcare and pharmaceutical sectors lie in providing audit, tax and advisory services to private medical aids, laboratories and hospital groups.
Our audit, tax and advisory specialists understand the challenges and complexities in this sector and will work with you to design solutions to support your organisation’s strategic objectives.
Contact an adviser today