Editor’s Note
This article highlights a significant and contentious debate within South Africa’s private healthcare sector. It reports on medical professionals publicly challenging the narrative that they are the primary source of fraud, waste, and abuse, instead pointing the finger at medical aid schemes. The discussion, which took place at a major industry summit, underscores the complex and adversarial relationship between providers and funders in the system.

Medical doctors have hit back against the commonly held narrative that they are the main drivers of fraud, waste and abuse in the private health sector – throwing the blame right back at their accusers, the medical schemes.
The not-so-subtle blame-shifting formed part of discussions held during the Council of Medical Schemes’ inaugural Fraud, Waste and Abuse Summit – held last week at the Sandton Convention Centre.
According to the council’s latest report figures, released last year, the annual claims paid out by schemes in 2017 amounted to R172 billion – and 15% of those claims were as a result of fraud, waste and abuse.
Dr Mvuyisi Mzukwa, board vice-chairperson of the SA Medical Association, said the narrative that doctors drive fraud, waste and abuse was incorrect and incomplete as there were a number of other drivers.
At the summit’s conclusion, the various schemes, health practitioners and industry bodies agreed on key definitions related to fraud, waste and abuse, and signed an industry charter pledging to work against them.
The two-day gathering was aimed at bringing together health practitioners, medical aids, policy makers and other industry stakeholders to discuss strategies to deal with such misrepresentation – which costs the industry between R22 billion and R25 billion a year.
Noticeably absent from the discussion was the Hospital Association of SA – the representative body for the majority of private hospitals in South Africa – to detail the role played by its sector.
According to the council’s report, most of the industry’s healthcare benefits went to covering hospital expenditure amounting to R59 billion.
First to address the attendees was the Special Investigating Unit (SIU) head, advocate Andy Mothibi.
Then Ishmael Mogapi, operations risk manager at the Government Employees Medical Scheme (Gems), added this body’s experience of a fraud committed that was linked to doctors.
And Paul Midlane, the general manager of healthcare forensics at Medscheme, cited the example of an obscure, run-down surgery claiming R1 million from the scheme for medicines dispensed in 11 months.
Midlane gave examples of how pharmacies and suppliers also contributed to fraudulent practices in the industry, with one pharmacy having claimed R1.2 million from Medscheme, yet on inspection, its shelves stood almost empty.
But doctors at the conference did not take the finger being pointed at them lying down.
Dr Elijah Nkosi, chief executive of the Independent Practitioners Association Foundation – representing 5 000 doctors – said medical aid schemes were also guilty of conducting underhanded “probes” of doctors’ practices to avoid paying out their claims.
Mogapi denied that Gems conducted probes on doctors’ practices.
Marius Smit, the head of forensic services at Discovery Health, also cautioned against only blaming doctors.