The private hospital industry in the greater Cape Town area

Increasing emphasis is being placed on the role of the private sector in health in South Africa. This article uses the private hospital (PH) industry in the greater Cape Town area as a case study. The development and structure of the industry is described. Access to PHs is found to depend largely on membership of a medical aid fund. The PHs offer a relatively limited service, concentrating mainly on surgical cases. Problems between the PH industry and the medical aid schemes relating to the fixing of tariffs are outlined. Controversy exists over the future of PHs. It is concluded that PHs do not form an alternative to public sector services and may in fact weaken them.