“Leading analysts are cautious about the growth trajectory for SA’s private hospital sector, citing stagnant medical scheme membership figures, a declining healthcare workforce, and a persistently challenging macroeconomic environment as key headwinds.” – Business Times (25 May 2025)
According to Luresha Chetty, senior equity analyst at Ashburton Investments, low GDP and high unemployment environment prevented healthy growth in healthcare industry, and the percentage of the population covered by medical schemes has fallen in recent years.
In response to the financial challenges private hospital groups like Life Healthcare and Netcare are expanding their service offerings into mental health care, renal care, oncology, and diagnostics to diversify revenue streams and create new pathways for acute patient volumes.