Contraction in gross domestic product (GDP) growth rate
Constrained consumer and capital spending
Increased debt threatening South Africa’s future economic prospects
Constrained government finances
Increased levels of unemployment
Volatile exchange rates
Infrastructure challenges
Electricity and water supply challenges
Complex regulatory landscape
Introduction of new regulations due to COVID-19
The one-year transition period from 1 July 2020 to comply with POPIA
Uncertainty around the impact of the NHI Bill and Medical Schemes Amendment Bill
Industry challenges
No growth in insured lives
Shortages of specialised skills
Funder pressure to reduce costs
Bed licences
The provincial Department of Health (DOH) approves bed licences for both present and future facilities
The efficiency of the application process, as well as the inconsistent application of the regulations by different provinces, remains a challenge and could impact our growth rate, as well as our capital expenditure levels
Annual inspections and changes to legislation and compliance requirements may require changes to our facilities, which will entail unintended costs
Doctor relationships
In accordance with the Health Professions Council of South Africa (HPCSA) regulations, doctors and other health professionals are independent practitioners within our hospitals, which effectively prohibits their employment by Life Healthcare
Refer to our response to COVID-19.
