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TOWARDS A SOCIAL COMPACT : A PARTERSHIP FRAMEWORK

THROUGH A PUBLIC SECTOR ENHANCEMENT FUND (PHEF)

Jackie Tau(Aspen Pharmacare)

BACKGROUND TO PHEF

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MOH’s overtures for support from PTE sector have been largely ignored

PTE sector CSI is highly fragmented with little coherence

Healthcare sector is often at ideological odds with itself

No form of structured institutionalised engagement between the private and public sector on policy and its implementation

Regulatory uncertainty and overhang dents investor confidence and future value creation in the sector

WE NEED TRUST AND STRUCTURED DIALOGUE

BACKGROUND TO THE ESTABLISHMENT OF THE PHEF

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SA has one of the worst disease burdens

Our HCS is collapsing in certain areas

Only the joint resources of the public and private sectors will be able to restore the HCS

Presently the PTE : Public Sector Relationship is characterised by bilateral lack of trust and confidence

Consequently, very difficult to have a discussion on policy and implementation issues in this climate

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ROAD TO PRETORIA

INDIVIDUAL COMPANY INTEREACTIONS

MARCH 2011 CT MEETING

JOINT DOH WORKING GROUP

CONSULTANT

DG MEETINGS

PRE – MOH

LAUNCH – ACCORD / COMPANY COMMITMENTS

SECTOR PARTICIPATION

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DISTRIBUTION

RETAIL

HOSPITAL HEALTH

CONSUMER

MCO’s PHARMA MED

DEVICES FUNDERS

PATHOLOGY

PHEF

WHAT IS THE PHEF?

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Like-minded PTE sector companies/associations

Identified need to build HCS by partnering DOH in improving PH delivery and outcomes

Identified need to build trust through institutionalised engagement on high level issues

No guarantees but if you have trust…..

No trade offs or offsets

Voluntary

RULES OF ENGAGEMENT

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Open to entire PTE sector that are credible

No one organisation claim leadership

No individual company branding

Compliance to statutory and governance requirements

Good faith, voluntary annual

3 year cumulative annuity

Can realise transformative outcomes

PURPOSE OF THE PHEF

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High priority projects that will transform HCS

Build trust, confidence and dialogue between PTE : Public sectors

Facilitate platforms for regular, sustainable, institutionalised engagement on policy and its implementation

Need to address total health outlook

Entrench legitimacy of PTE sector as key and permanent component of HCS and a partner to Government in achieving SA’s long term health goals

STRUCTURE

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PHEF NPC SECRETARIAT +

BOARD

HEALTH LEADERSHIP COUNCIL

RECOMMENDATION/ M&E COMMITTEE

“INVESTMENT COM”

ANY OTHER BOARD CO

Joint PTE Sector / Ministry of Health

MOI/Companies Or Associations

DUTIES OF THE HLC

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Joint Council / Committee between PTE participants and MOH/DOH

Approves projects to strengthen SA HCS

Engage on Policy and other issues of mutual concern

Meet 2 X a year with 3rd plenary meeting

OBJECTS OF THE PHEF NPC

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Part two of the 9th schedule of income tax act

Fund such projects ID by HLC, evaluated by investment company and approved by Board

Diligently invest and disburse funds received (no direct Government payment)

Maintain high Government standards and control

Constructive dialogue and engagement with MOH / DOH

CONTRIBUTION MECHANISM

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ENTITY VALUE

SED(according to BBBEE Act) 1,0% NPBT

Participating Companies 0.75% NPBT

BENEFITS OF THE PHEF

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Strengthen our HCS good for our business

Improved Government /PTE sector relationship

No additional cost

Provides greater certainty in the sector

Improve HCS asset utilisation and improved health indicators general SA risk

Brings an element of CSI co-ordination and efficiency better returns

Introduces sounding Board for DOH

Institutionalised dialogue

Country first

Work with person driving HR plan

WHERE ARE WE AT PRESENT?

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Letter of commitment from DG on behalf of MOH

partnership framework drafted and agreed by DG

Broaden PTE sector participation and formalise new structure

Further DG interactions to fine tune with all participants

MOH pre-launch hammer our final agreements

Launch