The Western Cape legislature has rejected the contentious National Health Insurance (NHI) Bill.
This followed a lengthy public participation process, which saw Western Cape residents express concerns about the financial and social implications of the bill's passage into law.
On Monday, the provincial legislature's standing committee on health and wellness, dominated by the Democratic Alliance (DA), voted against the bill in a meeting, which lasted just under 10 minutes.
Committee chairperson Gerrit Pretorius said the people of the Western Cape have spoken.
"NHI has the very real potential of being the final nail in our country's coffin, and there is little choice but to reject it.
"We urge the NCOP (National Council of Provinces) to take the Western Cape's mandate seriously and to give it the full consideration that is due by law and precedent.
"As the Western Cape submits its response to the NCOP, the message is clear: to pass this bill would lead to the total collapse of both the healthcare sector and the greater economy of South Africa. It must be rejected," Pretorius added.
The NHI Bill would allow the state to take control over virtually all healthcare in South Africa.
Pretorius said: "While the goal of universal health coverage is a noble one, this particular bill will have dire economic consequences for the Western Cape and South Africa.
"With a mounting debt crisis, a stagnant economy, and an energy crisis that makes real the threat of total economic collapse, South Africa already cannot meet its financial obligations."
Meanwhile, African National Congress (ANC) MPL Rachel Windvoegel said during the committee meeting the party's stance remained the same and supported the bill.
Last week, the NCOP Select Committee on Health and Social Services adopted the bill without any amendments to the version passed by the National Assembly, despite intense lobbying from Business Unity SA, Business for SA and healthcare professionals.
Once passed by the NCOP, it will be sent to President Cyril Ramaphosa to sign into law.
The SA Health Professionals Collaboration (SAHPC), a newly formed national group of nine medical and allied healthcare practitioner associations representing more than 25 000 private and public sector healthcare workers, said they were disappointed the NCOP Committee on Health and Social Services had not made any amendments to the NHI Bill.
The SAHPC - which includes family medicine GPs, specialist doctors, dentists, and allied healthcare workers - said they were deeply concerned about the unintended consequences that were likely to arise from the hasty adoption of the NHI Bill in its current format.
"The NHI Bill recommends a complete overhaul of the country's healthcare sector.
On Monday, SAHPC spokesperson Simon Strachan said, "While reforms to the public and private healthcare sectors are urgently needed, there is too much at stake for the country's healthcare system to get the NHI wrong."
"We are concerned the bill's hasty progression through the legislative process, without taking into account the diverse perspectives and expert insights delivered through numerous prior expert submissions, is a lost opportunity to put the country on a pathway to quality healthcare for all."
The Western Cape government has been vocal about its stance on the NHI Bill.
In July, Health MEC Nomafrench Mbombo said the country needed universal health coverage (UHC), which meant free healthcare for everyone.
"NHI is a money bill; it doesn't say anything about UHC," she added at the time.
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