The big hospital rip-off: Here’s how you are being fleeced

The cost for a natural birth at a Mediclinic facility – one of the country’s three large private hospital groups – is 76% higher than at two independent hospitals that are part of the National Hospital Network . And for Caesarean sections, it costs 26% more than at the Wilmed Park and Sunningdale hospitals, both in Klerksdorp.

Most of the numbers in the tribunal’s report were blocked from public view. But the many medical aid funds which objected to the deal reveal that the rates paid by the various groups differ widely. Larger medical aid funds negotiate large discounts for their members with some hospital groups. This implies that other medical aid funds and private patients can no longer obtain beneficial agreements, so the hospital groups can continue to earn their profit margins.

Larger medical aid funds negotiate large discounts for their members with some hospital groups. This implies that other medical aid funds and private patients can no longer obtain beneficial agreements, so the hospital groups can continue to earn their profit margins.Discovery Health Medical Scheme initially had no objection to the proposed Mediclinic-MMHS transaction because it would not cost the scheme more.

The tribunal found that such a situation would make it near impossible for medical aid funds to exclude Mediclinic from their hospital networks in the region – which is one of the most powerful bargaining tools a medical aid fund has. In its submission to the tribunal, medical scheme administrator Medscheme said that, in some cases, Mediclinic used the power of demographic exclusivity in negotiations.

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