HARARE, May 10 (NewsDay Live) - A fierce battle has erupted in Zimbabwe’s private healthcare sector after independent doctors, specialists, pharmacists and hospital operators accused medical aid societies of operating a system comparable to a “Ponzi scheme” and called on Parliament to outlaw vertical integration in healthcare funding.
In a strongly worded submission to lawmakers, the healthcare providers said medical aid societies (MAS) should not be allowed to both collect member premiums and own the clinics, pharmacies and hospitals where patients are treated.
The providers argued that the arrangement creates a dangerous monopoly that undermines competition, limits patient choice and financially cripples independent medical practitioners.
At the centre of the dispute is Section 14A of proposed medical legislation, which seeks to prohibit health funders from owning healthcare service providers.
The healthcare coalition defended the proposed clause and rejected attempts to block it, saying patients are increasingly being forced into MAS-owned facilities because independent doctors are being paid unsustainably low consultation fees.
According to the providers, some doctors are receiving as little as US$5 for consultations that normally cost US$25, making it difficult for independent practices to survive.
“Why should the same organisation that holds the purse strings also hold the scalpel?” the providers asked in their submission, arguing that there is an inherent conflict of interest when insurers also own treatment centres.
The doctors also referenced controversies surrounding the Premier Service Medical Aid Society (PSMAS), alleging that member contributions were diverted into investments unrelated to healthcare while patients struggled to access treatment and medication.
They claimed funds meant for healthcare were channelled into areas such as real estate and artisanal gold mining projects, while hospitals faced drug shortages and civil servants insured under the scheme were reportedly turned away from medical facilities.
The providers argued that such investments demonstrate why medical aid societies should be restricted from expanding beyond their core healthcare mandate.
They further challenged claims that similar healthcare structures are permitted in countries such as South Africa and the United Kingdom, insisting that South African law imposes strict limits designed to prevent conflicts of interest between funders and healthcare providers.
The healthcare groups warned that Zimbabwe’s private medical sector risks replicating failures seen in the public healthcare system, where the government acts as regulator, funder and provider simultaneously.
As part of proposed reforms, the providers called for:
* immediate passage of Section 14A,
* creation of an independent healthcare regulator,
* forensic audits of all MAS investments since 2015,
* publication of investment approvals and executive decisions,
* and the introduction of transparent, cost-based tariff structures.
They argued that prohibiting vertical integration would not destroy healthcare infrastructure but would instead separate funding from service delivery, improving accountability and protecting patient interests.
The submission now places Parliament at the centre of a growing confrontation over the future of Zimbabwe’s estimated US$1 billion private healthcare industry, with lawmakers expected to deliberate on the proposed reforms in the coming weeks.
