R138 million Fees Owed to Closed Gauteng Private Wards

March 16, 2015

R138 million in patient fees is owed to the Gauteng Health Department from the Folateng private wards that have now been closed.Bloom-Jack1-240x300

This is disclosed in a written reply by Gauteng Health MEC Qedani Mahlangu to my questions in the Gauteng Legislature.

According to Mahlangu, private medical aids owe R106 million of the total amount owing for patient fees.

After operating for more than 10 years, the Folateng wards at the Charlotte Maxeke Johannesburg, Helen Joseph and Sebokeng hospitals have been integrated into the main hospital for the use of public patients.

These wards were supposed to make money from private patients in order to subsidise public patients, but have lost R77 million in the last three years, mainly because of poor administration.

They were closed after instructions by National Health Minister Aaron Motsoaledi.

The Folateng fiasco has been an expensive mistake. My estimate is that they lost more than R500 million in total since inception, including the cost of expensive building alterations.

The high level of non-collection from private medical aids shows the general incompetence in running Folateng.

I am pleased that these wards have been closed, but the outstanding money must be collected as soon as possible.

 

Media enquiries:

Jack Bloom MPL

DA Gauteng Shadow MEC for Health

082 333 4222