National budget cuts threaten Western Cape hospitals

Resources for free healthcare are being scaled back in the face of the looming national budget crisis.

Newsroom

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Newsroom

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Nov 14, 2023

National budget cuts threaten Western Cape hospitals

An ominous budget shortfall of at least R570 million is pushing the Western Cape's three major hospitals to enact severe cuts in services, as they attempt to avert a medical catastrophe by January 15. The government's response to this crisis has left many frustrated, as the freezing of posts for specialists and frontline healthcare workers has created an impossible situation to manage.

The financial shortfall is substantial, with Tygerberg Hospital facing a shortage of R275 million, Groote Schuur Hospital dealing with a deficit of R264 million, and the Red Cross War Memorial Children's Hospital encountering a R31 million budget gap. These hospitals spend around 2/3rds of their budget on wages.

The dire financial situation is unlikely to improve, meaning further cuts are on the horizon in the years to come. As a result, departments in the academic hospitals have been tasked with reducing consumables by half, eliminating overtime, discontinuing the use of nursing agencies to address shortages, and delaying job postings by three months. Staff members are being encouraged to take leave.

The scaling back of services is an annual occurrence, but this year's duration is unprecedented, lasting four weeks instead of the typical two. Most elective surgeries will be postponed, with only emergency procedures taking place.

Healthcare experts have raised concerns about the impact of these cuts, emphasizing the potential for a delay in patient care and an increase in complex medical cases. They assert that the closure of outpatient clinics for an extended period and the halt of elective surgeries will have detrimental effects on patient health.

Our health services, already overburdened since the 2007 departmental circular mandating free healthcare at the point of sale for all immigrants, now runs the risk of being unable to service our citizens. Adding to this pressure are high interest rates and a high burden of public sector wages, which leave little room for acquiring doctors and other specialists at internationally competitive rates, which affects the retention of vital talent.

For example, Groote Schuur Hospital is already grappling with the departure of three anesthetists who will not be replaced for three months due to budget constraints.

To bridge this budget shortfall, Groote Schuur Hospital, Tygerberg Hospital, and the Red Cross War Memorial Children's Hospital have decided to scale down their services from mid-December to mid-January. Additionally, several cost-saving measures must be implemented promptly, including a 50% reduction in consumables, a freeze on job postings, and a reduction in surgical procedures.

The impact of these reductions will be especially significant for the growing pediatric population, leading to less access to healthcare services. Concerns have been raised about the government's lack of communication and action in response to these issues.

As the January 15 deadline approaches, healthcare professionals foresee further cuts and a potential healthcare crisis. The current budget cycle is ending, and uncertainty looms about what will come next, especially considering high inflation rates.

Amid these challenges, some departments do not have adequate human resources, and many doctors are not funded by the government but rather through fellowships. Healthcare specialists are bracing for difficult times ahead, raising concerns about the medical-legal issues they may face.

While some budget reallocations have been promised by Finance Minister Enoch Godongwana, the details remain unclear, leaving healthcare professionals anxious about the future of the medical system. The lack of clear communication and solutions from the government has deepened the concern among healthcare workers and the public.

Other means of slashing costs, such as cutting wages for admin and support staff, or restricting access for non-citizens, are not attainable under the current system.

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