Outsourced cancer tests cost state R18m a month

HEALTH Minister Aaron Motsoaledi said building the capacity of the National Health Laboratory Services (NHLS) in terms of staff and equipment was more cost-effective than outsourcing tests to private laboratories.

- MAYIBONGWE MAGHINA

Motsoaledi said that while it was financially advantageous for the NHLS to in-source, such a move required sufficient budget and cash flow to compete with the higher salaries of private laboratories and high-cost equipment.

“This requires additional funding either through increased fees or an allocation from the National Treasury,’ he said.

Motsoaledi was responding to parliamentary questions by DA MP Michele Clarke about NHLS partnering with private sector company, PathCare, to tackle the delays in cancer testing at its Johannesburg facility.

According to Motsoaledi, the provincial Health departments are under severe financial strain.

The minister also said the strategy was to incrementally direct surplus funds towards equipment and staff salaries.