Econ Unit VIII- 5 pages essay

King Faisal to Hike Tariffs - is It Pro People Or Business? Africa News Service, March 10, 2007

Byline: Charlotte Kyakwera

Kigali, Mar 10, 2007 (The New Times/All Africa Global Media via COMTEX) -- The recent announcement by King Faisal about the imminent raise of hospital tariffs has shocked many and left one wondering whether the decision was made with regard to the community it is serving. The declaration was made on Tuesday March 6 chaired by John Stevens, the hospital's Director General, at its premises in Kacyiru, Gasabo District, Kigali City.

Stevens attributed the hike to a current deficit gap of 135 percent of cost cover revenue, which he said was caused by repeated tariff reductions in the previous years, and believes the increase would help close the existing gap by 50 percent and to attain responsible and healthy financial conditions. This is still doubted by many since even with the current tariffs few had had the capacity to obtain the hospital's services.

Stevens was quoted in The New Times of Tuesday March 7 saying that the hospital which was set up in August 1998 and put under the management of Netcare, a South African firm, had tariff rates adapted from Representative Association of Medical of South Africa and adjusted to accommodate Rwandan economy. Though the adjustment was made, the hospital tariffs continued to appear high and unaffordable by the general population.

"This fee was, however, considered highly expensive for the population and gave the hospital a reputation that it only catered for the so-called 'elite," Stevens was quoted as saying.

Notwithstanding the existing unaffordable tariffs at the hospital and the presumed raise by next week, most people are worried about the tariffs since currently a cup of tea costs Frw1200 - a cost higher than that at Umubano Novotel, a three star hotel. Even when the Managing Director of the hospital confirmed that it caters for all, he is still talking of raising tariffs and one wonders who the hospital is targeting. Had it been a leisure facility there would have been none complaining about the hike because leisure is among goods of ostentation (The higher the price the higher the level of consumption). Given the fact that every Rwandan has a right to good health services, the hospital should instead reduce its tariffs other than raising them.

Rwanda is a third world country and therefore the services provided should suit the poor citizens who are usually the majority compared to the elite targeted by King Faisal Hospital. The hospital will soon be compared to five-star hotels, yet meals are compulsory and costly for hospitalised patients. Everyone acknowledges the need to feed patients probably on a well prepared and nutritious meal, but does it have to be that expensive? Couldn't the hospital give patients an option for some to get food from their homes instead of being forced to buy expensive meals which is an added expense to hospital bills? Very soon patients will be escaping from the hospital for fear of charges.

The tariff for a regimen of coartem is $ 10 - an equivalent of Frw 5000; imagine how many rural Rwandans will afford the treatment. Do we need to force the populace to turn to herbs as an alternative to expensive medical care?

Something should be done for all citizens to be accommodated in better health services. The official in charge of Pediatrics Department, Dr Joseph Mucumbitsi, said the decision to hike the tariffs was taken after the government asked the hospital to improve on its service standards. "The government asked the hospital management to devise means of providing superior health services in order to cut expenses on the referral of patients to hospitals abroad," he said.

If most Rwandans have failed to cope with the existing tariffs at King Faisal, then how does one expect Rwandans to afford the hiked tariffs? Is the hospital proving to be serving expatriates in disguise? That would mean that Rwandans will seek medical services in other moderate hospitals and King Faisal will attend to few patients who could afford hospitals abroad as well.

Since the government helps the hospital in paying workers, buying equipment and servicing a loan of US$12 million (approx Frw6.48 billion) from the Kingdom of Saudi Arabia as alleged by Dr Mucumbitsi, why should prices be hiked? Are other stake holders passive? Before hiking tariffs the hospital should make a survey on the cause of some diseases and how to reduce their spread. Maybe diseases can be easily prevented than treated.

Most people around the country are affected by malaria which is a sign that mosquito nets are either not in use or misused. Whether the sick have had access to coartem is not clear. The government as a stakeholder should step in and help its citizens by sensitizing them on how to use mosquito nets and how it would help save the money they use on coartem. Recently it was reported that some people ignorantly use mosquito nets for fishing, while others in the Eastern province were found smuggling them to Uganda. This calls for more sensitisation for proper use of mosquito nets to prevent malaria and save money that would be used for treatment.

Medical services are basic necessities for a healthy society and therefore tariffs in hospitals should be tamed to accommodate all citizens. Otherwise the citizens will die of preventable and treatable diseases because of lack of funds to facilitate their treatment in deluxe hospitals. The minister of health should see to it that better medical care is provided to all at affordable prices in order to have a healthy society.

Copyright The New Times. Distributed by AllAfrica Global Media (allAfrica.com).

by Charlotte Kyakwera

Full Text: COPYRIGHT 2007 COMTEX News Network, Inc. Africa News Service. News Provided by Comtex. http://www.comtexnews.com

Source Citation

"King Faisal to Hike Tariffs - is It Pro People Or Business?" Africa News Service 10 Mar. 2007. Opposing Viewpoints in Context. Web. 2 Jan. 2016.

Document URL http://ic.galegroup.com/ic/ovic/NewsDetailsPage/NewsDetailsWindow?failOverType =& query=&prodId=OVIC&windowstate=normal&contentModules=&display-qu ery=&mode=view&displayGroupName=News&limiter=&currPage=&disa bleHighlighting=false&displayGroups=&sortBy=&search_within_results=& p=OVIC&action=e&catId=&activityType=&scanId=&documentId=GALE %7CA160399228&source=Bookmark&u=oran95108&jsid=d379781fca20b82ce47ca 30172d1954c

Gale Document Number: GALE|A160399228