The Namibian Competition Commission (NaCC) is conducting a study to address complaints of uneven distribution of coverage, high costs of services, and competition-related issues in the private healthcare system.

This will consider the period between 2001 and 2021 to understand competition issues in the private healthcare sector.

The private healthcare sector serves only 18% of the population with medical aid and is said to be skewed in structure and provision of services, while its state of competition is also not well understood.

NaCC Chief Executive Officer, Vitalis Ndalikokule, explained during a consultative workshop on the study that understanding competition issues will enable the government to come up with policy initiatives and counter anti-competitive market conditions.

"Given the importance of the health sector to the development of the Namibian economy and the wellness of Namibian citizens, it is important to understand competition issues that may have an impact on the efficiency and effectiveness of access to quality healthcare. Access to quality healthcare can only exist if this sector is operating at the most efficient levels for the benefit of every Namibian."

There are 890 private healthcare facilities, with 72% doctors and about 50% registered nurses.

The private healthcare market in Namibia has experienced systematic cost increases from 2005 to 2021.

In 2005, an average beneficiary on a medical aid scheme spent almost N$6,000 annually, which increased to N$21,400 per year in 2021.

"Given the competition concerns in the private healthcare sector, including the perceived rising costs of health services, there is a need to inquire into the factors that drive the observed increases in private healthcare expenditure and prices in Namibia, identifying factors that prevent, distort, or restrict competition," explained Dr. Petrus Mhata, who is a consultant on the study.

The NaCC and relevant stakeholders will review and further investigate the factors contributing to systematic cost increases and further determine areas of concern that can be addressed through competition advocacy.