Identifying the appropriate financing vehicles for healthcare providers in South Africa

Abstract

This research paper aims to find the financing vehicles that are best suited for a healthcare business. It proposes distinguishing the financing vehicle that will be suitable to both finance applicants and finance providers in the private and public sectors. The study aims to create congruencies between the two sectors in resolving their common goal of improving the healthcare crisis in South Africa. Through in-depth face to face interviews using the open-ended approach of grounded theory, practical insights suggested equity-based financing as the most appropriate vehicle of finance based on the preference of avoiding start-up debt, removing the pressure of business performance to repay debt, and to maintain control of their business. The research approach narrowed the results to urban professionals predominantly in the private sector with no input from the banks, leaving room for further study to provide a balanced view. Innovations in the financial sectorÕs vehicles of financing are paramount to bring together private and public sectors thereby alleviating the pressure on the public healthcare system and for the improvement of the health of the South African population. This study indicates the practical solution that can be applied to providing an environment in which business and government can work together to solve for a common objective.