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# South Africa: North Gauteng High Court, Pretoria
South Africa: North Gauteng High Court, Pretoria
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[2024] ZAGPPHC 677
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## Solidarity Trade Union and Others v Minister of Health and Others (61844/2021)
[2024] ZAGPPHC 677; [2024] 4 All SA 264 (GP);
2024 (11) BCLR 1451 (GP);
2024 (6) SA 639 (GP) (24 July 2024)
Solidarity Trade Union and Others v Minister of Health and Others (61844/2021)
[2024] ZAGPPHC 677; [2024] 4 All SA 264 (GP);
2024 (11) BCLR 1451 (GP);
2024 (6) SA 639 (GP) (24 July 2024)
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sino date 24 July 2024
FLYNOTES:
CONSTITUTION – Healthcare –
Certificate
of need
–
Limiting
healthcare facilities and practitioners in certain area –
Constitutional Court previously found scheme inchoate
without
regulations and proclamation of scheme set aside –
Regulations still not promulgated and scheme not proclaimed
–
Scheme in its terms violates dignity, freedom of movement and
residence – Impermissible expropriation –
Declared
unconstitutional – Sections 36 to 40 severed from Act –
Matter referred to Constitutional Court for
confirmation –
National Health Act 61 of 2003
,
ss 36
-
40
.
IN THE HIGH COURT
OF SOUTH AFRICA
(GAUTENG DIVISION,
PRETORIA)
Case No. 61844/2021
(1) REPORTABLE:
YES/
NO
(2) OF INTEREST TO
OTHER JUDGES: YES/
NO
(3) REVISED
DATE: 24 JULY 2024
SIGNATURE:.
In the matter
between:
SOLIDARITY TRADE
UNION
FIRST
APPLICANT
ALLIANCE OF SOUTH
AFRICAN INDEPENDENT
SECOND APPLICANT
PRACTITIONER
ASSOCIATIONS
SOUTH AFRICAN PRIVATE
PRACTITIONER FORUM THIRD
APPLICANT
PRETORIUS, BARBARA
FOURTH APPLICANT
ROLLIN, CHRISTA
FIFTH APPLICANT
SPIES, BREAAN
SIXTH APPLICANT
HEYNS, ANJA
SEVENTH APPLICANT
HOSPITAL ASSOCIATION
OF SOUTH AFRICA
EIGHTH APPLICANT
And
MINISTER OF HEALTH
FIRST RESPONDENT
PRESIDENT OF THE
REPUBLIC OF SOUTH AFRICA SECOND RESPONDENT
DIRECTOR-GENERAL,
NATIONAL DEPARTMENT OF THIRD
RESPONDENT
HEALTH
Coram:
Millar
J
Heard
on:
4 & 5 June 2024
Delivered:
24 July 2024 ~ This judgment was handed down
electronically by circulation to the parties' representatives by
email, by being uploaded
to the CaseLines system of the GD and by
release to SAFLII. The date and time for hand-down is deemed to be
10H00 on 24 July 2024.
Summary:
Constitutional
law – challenge to constitutionality of the Certificate of Need
(CON) scheme set out in
sections 36
–
40
of the
National Health
Act 61 of 2003
– Constitutional Court previously found scheme
inchoate without regulations and proclamation of scheme set aside in
2015
~ regulations still not promulgated and scheme not proclaimed –
scheme in its terms violates
sections 10
(dignity),
21
(freedom of
movement and residence), 22 (to choose a trade, occupation and
profession), 25(1) (no arbitrary depravation of property),
25(2)
(impermissible expropriation) and 27(1) (right of access to
healthcare) of the Constitution – CON scheme declared
unconstitutional and sections 36 to 40 severed from the Act –
matter referred to the Constitutional Court for confirmation.
ORDER
It is Ordered:
[1]
It is declared that
sections 36
to
40
of the
National Health Act 61
of 2003
are invalid in their entirety and are consequently severed
from the Act.
[2]
In terms of section 167(5) of the Constitution read together with
section 15
of the
Superior Courts Act 10 of 2013
and
Rule 16
of the
Rules of the Constitutional Court, the Registrar of this Court is
directed to lodge a copy of the order and this judgment,
within 15
days of the order, with the Registrar of the Constitutional Court.
[3]
The first and third respondents are ordered to pay the costs of the
application of the first to
eighth applicants which costs are to
include the costs consequent upon the engagement of two counsel.
JUDGMENT
MILLAR J
[1]
The
applicants challenge the constitutionality of the Certificate of Need
(CON) scheme introduced in sections 36 to 40 of the National
Health
Act
[1]
(NHA).
The applicants seek an order declaring that those sections are
unconstitutional and invalid in their entirety and ought to
be
severed from the NHA.
[2]
The
first, second and third applicants are organizations that represent
private medical practitioners. The fourth to eighth
applicants
are healthcare providers and the owners of healthcare establishments.
Such healthcare establishments include private
hospitals, pharmacies,
clinics and private rooms set up by any healthcare provider, even if
the rooms are private and within the
home of the healthcare
provider. The applicants are all directly affected by the CON
scheme and make common cause with each
other in the present matter.
The applicants, besides all acting in their own respective interests
as persons affected by the CON
scheme also act in the wider interests
of all persons who will be subjected to the scheme if implemented.
[2]
[3]
The first and third respondents are the parties
under whose aegis the NHA and the implementation of the CON scheme
fall.
They too make common cause with each other in the
present matter. The second respondent was cited by virtue of
the fact that
he has the power to proclaim the commencement of the
relevant sections of the NHA, but he has taken no part in these
proceedings.
BACKGROUND
[4]
The NHA was enacted to “
provide
a framework for a structured uniform health system within the
Republic, taking into account the obligations imposed by the
Constitution and other laws on the national, provincial and local
governments with regard to health services.”
Additionally, its preamble it also recognizes,
inter alia
“
the
socio-economic injustices, imbalances, and inequities of health
services of the past”
and “
the
need to improve the quality of life of all citizens and to free the
potential of each person.”
The
preamble specifically provides for the NHA to “
unite
the various elements of the national health system in a common goal
to actively promote and improve the national health system
in South
Africa.”
[5]
The NHA commenced on 2 May 2005 with the exception
of a number of sections which were yet to be proclaimed.
Included in those
sections that were yet to be proclaimed are
sections 36 to 40 which form the subject matter of the present
proceedings.
[6]
Broadly speaking, the CON scheme requires both
healthcare service providers and facilities which offer healthcare
services (by healthcare
service providers) to apply for a certificate
of need for the place where they wish to render services.
[7]
The
provisions of the CON scheme are not concerned with the maintenance
of professional standards of practitioners or with the standards
to
which health facilities are to be constructed or operated
[3]
.
The CON scheme is not aimed at regulating how services are rendered
but rather the place where they are to be rendered.
[8]
Chapter 3 of the NHA provides for the
establishment of norms and standards applicable to health services.
Although the provisions
of this chapter are operable, there are at
this stage, still no norms and standards that have been put in place.
[9]
Besides applying to all new entrants to the market
in a particular area, the CON scheme places a time limit on any
certificate that
may be granted a period for up to 20 years.
After 20 years, an application for renewal must be submitted. Through
the issueing
of certificates of need, the number of both healthcare
practitioners and facilities such as hospitals or private medical
practices
which are permitted by law to operate within a particular
area can be limited. The scheme criminalizes the provision of
healthcare
services in a particular area or the operation of a
facility if a certificate of need has not been issued.
[10]
On 31
March 2014, sections 36 to 40 were proclaimed to be operative as from
1 April 2014.
[4]
This
proclamation was subsequently set aside in
President
of the Republic of South Africa and Others v South African Dental
Association and Another.
[5]
The
Constitutional Court found that:
“
The
purpose of the President’s power to bring portions of the
National Health Act into
operation is to achieve an orderly and
expeditious implementation of a national regulatory scheme for health
services. Clearly
the decision to issue the Proclamation before
there was any mechanism in place to address applications for
certificates of need,
thereby rendering the provision of health
services a criminal offence, was not rationally connected to this
purpose (or any other
governmental objective).”
[6]
(footnotes
omitted).
[11]
Accordingly, the CON scheme is, without the
necessary regulations, inchoate. Until there are regulations,
the CON scheme can
never become operative.
RIPENESS
[12]
It is common cause between the parties that at
present, the regulations required in order to give effect to the
sections in question
do not yet exist and that there has been no
further proclamation of the operation of these sections. The fact
that the CON scheme
is presently inchoate and incapable of being put
into operation without regulations, has the consequence, so it was
argued by the
respondents, of there being nothing to challenge
and that for this reason the issue is not ripe for hearing.
[13]
The
respondents relied upon
Ferreira
v Levine NO and Others; Vryenhoek and Others v Powell NO and
Others
[7]
in
which it was held:
“
Suffice
it to say that the doctrine of ripeness serves the useful purpose of
highlighting that the business of a court is generally
retrospective;
it deals with situations or problems that have already ripened or
crystalized, and not with prospective or hypothetical
ones.
Although, as Professor Sharpe points out and our Constitution
acknowledges, the criteria for hearing a constitutional
case are more
generous than for ordinary suits, even cases for relief on
constitutional grounds are not decided in the air.
And the
present cases seem to me, as I have tried to show in the parody
above, to be pre-eminent examples of speculative cases.
The
time of this Court is too valuable to be frittered away on
hypothetical fears of corporate skeletons being discovered.”
[14]
The
respondents also referred to
Law
Society of South Africa v President of the Republic of South
Africa
[8]
in
which it was held:
“
As
a general proposition, legislative and comparable processes must be
left to run their normal and full course before courts intervene.
This is particularly so where appropriate checks and balances are in
place to secure the rights of those who might otherwise have
been
disadvantaged by actual or perceived irregularities. One such
example is our elaborate law-making process which has
the added
advantage of the President’s constitutional power to send
legislation back to the National Assembly for reconsideration
or
refer it to the Constitutional Court for the determination of its
constitutionality before assenting to and signing it into
law.
All this is to be done to protect the rights and interests of the
public.
Courts therefore ought
to intervene in incomplete processes only when no other avenue is
realistically available to adequately address
whatever grievances the
people might have. . . . This would explain why other arms must also
be allowed to discharge their obligations
in terms of set procedures
before court may interfere, barring exceptional circumstances. . .
Hasty intervention that borders
on prematurity is ordinarily
inappropriate. That said, the practice or rule is not
inflexible. The interests of justice
sometimes require court
intervention, even if a particular process might still not be
complete. A comparison between the
principles that govern a
law-making process and those applicable to the process prescribed for
international agreements is thus
necessary.”
[15]
The
crux of the argument on the part of the respondents is that the case
advanced by the applicants was not grounded in “
the
operation of sections 36 to 40 of the NHA.”
It
was posited by them that “
[b]efore
the Applicants rights could even possibly be limited further several
steps would have to occur. . .”.
In
other words, whatever the shortcomings of the sections that the
applicants assert, these must actually eventuate, and it is only
after the proclamation of the sections (together with their
regulations) that any challenge should be mounted.
[9]
A
central tenet of this argument was that the regulations to be
promulgated may cure such shortcomings, if there were indeed any.
[16]
Insofar as the argument relating to the absence of
regulations was concerned, the applicants argued that section
39(1) conferred
a discretion upon the Minister of Health to make
regulations. There was no requirement that such regulations in fact
be made. Furthermore,
the use of regulations in the interpreting of
legislation is impermissible.
[17]
The applicants also argued that the fact that the
relevant sections were not yet operative did not prevent this court
from enquiring
into the validity of the provisions. On at least
3 previous occasions the Constitutional Court set aside an ‘as
yet’
inoperative provision.
[18]
The
first of these was
Khosa
v Minister of Social Development and Others; Mahlaule and
Others v Minister of Social Development and Others
[10]
where
it was held:
“
Section
81 of the Constitution provides:
“
A
Bill assented to and signed by the President becomes an Act of
Parliament, must be published promptly, and takes effect when
published or on a date determined in terms of the Act.”
The [impugned
legislation] has been signed by the President and is therefore an Act
of Parliament within the meaning of section
81 of the Constitution.
In terms of section 172(2) a court may make an order concerning
the constitutional validity of an
Act of Parliament. Thus, the fact
that [the impugned section] has not yet been brought into force
should not remove it from the
jurisdiction of this Court to determine
its constitutionality. This is similar to the position in Canada and
the United States
where a provision can also be challenged if it has
not yet been brought into force.”
[19]
This
was followed in
Doctors
for Life International v Speaker of the National Assembly.
[11]
Recently
in
South
African Iron and Steel Institute v Speaker of the National
Assembly
[12]
an
inoperative statutory provision was also set aside.
[20]
It is clear that this court may enquire into the
constitutionality of the impugned sections notwithstanding that they
are not yet
operative. But what of the argument that absent the
regulations, any enquiry is fruitless and would be
in
vacuo
?
[21]
The
NHA definition of ‘
health
services’
is
expansive
[13]
and
accordingly, so too is the reach of any regulations made in terms of
section 39 read together with section 90.
[22]
The respondents argued that “
[t]he
Act does not contemplate that all existing healthcare services and
providers will be required to obtain a certificate
of need scheme;
rather the requirement for a certificate applies to those intending
to provide “prescribed healthcare services”;
what is to
constitute prescribed services can only be done by way of regulations
in terms of section 90.”
[23]
In
National
Lotteries Board v Bruss NO,
[14]
it was
held that:
“
It
is not permissible to use a definition created by a Minister in
regulations to interpret the intention of the legislature in
an Act
of Parliament, notwithstanding that the Act may include regulations.”
[25]
Reliance upon the yet to be made regulations does
not avail the respondents in this matter. It certainly offers no
answer to what
the intention and the scope of the CON scheme is to be
if its reach is to be determined in the regulations.
[26]
Since the making of regulations is not peremptory,
the CON scheme must be evaluated and considered in the terms upon
which it was
birthed by Parliament. If sections 36 to 40 of the NHA
do not withstand constitutional scrutiny, then the complaint of the
applicants
is neither uncrystallized nor hypothetical. For the
reasons I have set out, I find no merit to the argument proffered by
the respondents
the matter is not ripe for hearing.
DOES THE CON SCHEME
PASS CONSTITUTIONAL MUSTER?
[27]
The CON scheme stands upon 5 legs. The first
is section 36 which stipulates who requires a certificate and the
procedure to
be followed. The second, section 37, provides for
the duration of validity. The third, section 38, for an appeal
against
the refusal to issue or renew a certificate. The fourth,
section 39, empowers the making of regulations in terms of section 90
for the determination of what is to be considered when issuing or
renewing (or the refusal to do so) of a certificate and the fifth,
in
section 40, which provides for the criminalization of persons who
provide health services without being in possession of a certificate.
[28]
The
CON scheme encompasses both individual private medical practitioners,
individual persons employed by them
[15]
to
provide healthcare but also to juristic persons
[16]
who
establish and operate facilities at which healthcare services are
provided. The reach of the CON scheme is extensive and
goes so
far, when regard is had to the definition of “health agency”
in the NHA, to even include medical schemes in
terms of the Medical
Schemes Act.
[17]
[29]
The 5
sections operate in an integrated manner to give effect to the
scheme. Accordingly, it must be considered both individually
and collectively to determine whether or not one or more of the
sections or the scheme as a whole, give effect to the purpose for
which the NHA was enacted
[18]
and
whether or not it infringes upon the constitutional rights that the
applicants assert are infringed by the scheme.
[30]
The applicants argue that at least 6
constitutional rights are infringed. These are:
[30.1]
the right to human dignity;
[19]
[30.2]
the right to freedom of movement and residence;
[20]
[30.3]
the right to choose a trade, occupation and profession;
[21]
[30.4]
the right not to be arbitrarily deprived of property;
[22]
[30.5]
the impermissible expropriation of property;
[23]
and
[30.6]
the right of access to healthcare.
[24]
[31]
In
order to determine whether or not the scheme infringes on
constitutional rights, the test to be applied is that set out by the
Constitutional Court in
Ex
Parte Minister of Safety and Security and Others : In Re S v Walters
and Another
[25]
where
it was held:
“
[26]
….This is essentially a two-stage exercise. First there is the
threshold enquiry aimed at determining
whether or not the enactment
in question constitutes a limitation on one or other guaranteed
right. This entails examining (a)
the content and scope of the
relevant protected right(s) and (b) the meaning and effect of the
impugned enactment to see whether
there is any limitation of (a) or
(b). Subsections 39(1) and (2) of the Constitution give guidance as
the interpretation of both
the rights and enactment, essentially
requiring them to be interpreted so as to promote the value system of
an open and democratic
society based on human dignity, equality and
freedom. If upon such analysis no limitation is found, that is
the end of the
matter. The constitutional challenge is dismissed
there and then.
[27]
If there is indeed a limitation, however, the second stage ensues.
This is ordinarily called
the limitations exercise. In essence it
requires a weighing-up of the nature and importance of the right(s)
that are limited together
with the extent of the limitation as
against the importance and purpose of the limiting enactment. Section
36(1) of the Constitution
spells out these factors that have to be
put into the scales in making a proportional evaluation of all the
counterpoised rights
and interests involved.”
THE RIGHT TO DIGNITY,
THE RIGHT TO FREEDOM OF MOVEMENT AND RESIDENCE AND THE RIGHT TO
CHOOSE A TRADE, OCCUPATION AND PROFESSION
[32]
It was
argued by the applicants that the scheme impermissibly impairs the
human dignity of individual healthcare providers
and healthcare
workers and their right to be treated with inherent and infinite
worth.
[26]
This
is a foundational right
[27]
which
also safeguards an individual’s reputation built on their
achievements
[28]
,
right to work
[29]
as
well as the ability to support themselves and their families.
[30]
[33]
It was argued that the scheme “
tramples
on the choices that healthcare providers have made for their own
lives. This includes where they want to reside,
the places they
wish to send their children to school and the communities to which
they belong.”
[34]
It was
also argued that the scheme, in limiting the choices an individual
may make with regards to where they are to reside and
to “make
their lives” is inextricably linked to their right to pursue
the life endeavour of their choice.
[31]
While
the constitution provides that the practice of any trade, occupation
or profession may be regulated by law, neither the NHA
nor the CON
scheme have this as their purpose. There is bespoke
legislation
[32]
which
regulates the practice of healthcare providers and healthcare workers
and this is recognised in the NHA.
[35]
In
Affordable
Medicines Trust v Minister of Health
[33]
that:
“
What
is at stake is more than one’s right to earn a living,
important though that is. Freedom to choose a vocation is
intrinsic to the nature of a society based on human dignity as
contemplated by the Constitution. One’s work is part
of
one’s identity and is constitutive of one’s dignity.
Every individual has a right to take up an activity which
he or she
believes himself or herself prepared to undertake as a profession and
to make that activity the very basis of his or
her life. And
there is a relationship between work and the human personality as a
whole. It is a relationship that
shapes and completes the
individual over a lifetime of devoted activity, it is the foundation
of a person’s existence.
Though
economic necessity or cultural barriers may unfortunately limit the
capacity of individuals to exercise such choice, legal
impediments
are not to be countenanced unless clearly justified in terms of the
broad public interest. Limitations on the
right to freely
choose a profession are not to be lightly tolerated.”
(footnote
omitted).
[36]
The
Constitutional Court set out the scope and test of section 22 of the
Constitution in the matter of
South
African Diamond Producers Organisation v Minister of Minerals and
Energy
,
[34]
it
held:
“
Section
22 comprises two elements: the right to choose a trade,
occupation or profession freely, and the proviso that the
practice of
a trade, occupation or profession may be regulated by law.
Though both the “choice” of trade and
its “practice”
are protected by section 22, the level of constitutional scrutiny
that attaches to limitations on each
of these aspects differs.
If a legislative provision would, if analysed objectively, have a
negative impact on choice of
trade, occupation or profession, it must
be tested in terms of criterion of reasonableness in section 36(1).
If however,
the provision only regulates the practice of that trade
and does not affect negatively the choice of trade, occupation or
profession,
the provision will pass constitutional muster so long as
it passes the rationality test and does not violate any other rights
in
the Bill of Rights. In that case, there is no
limitation of section 22 and no section 36 analysis is required.
As this Court held in Affordable Medicines, “restrictions on
the right to practise a profession are subject to a less stringent
test than restrictions on the choice of a profession.”
The first question,
then, is whether [the impugned provision] imposes restrictions on the
choice of a trade, occupation or profession,
or only on its
practice. This court has not yet laid down specific guidance
for determining when a legislative provision
“is likely to
impact negatively on the choice” of profession, trade or
occupation, as opposed to simply regulating
the practice of that
trade, occupation or profession. However, some guidance may be
sought from Affordable Medicines, the
leading judgment on the
interpretation of section 22.
In Affordable
Medicines, this Court held that a law requiring medical practitioners
who wished to dispense medicines to obtain a
licence, did not have
the effect of influencing negatively a person’s decision
whether to become a medical practitioner.
This was
because the provision did not purport to regulate entry into the
medical profession, nor did it affect the continuing
choice of
practitioners as to whether to remain medical practitioners or not.
It merely regulated the specific circumstances
in which medical
practitioners may, if they choose, dispense medicines. The
Court further held that it was “difficult
to fathom” how
a person who has chosen to pursue a medical profession could be
“deterred from that ambition by the
requirement that, if, upon
qualification, he or she wishes to dispense medicine as part of his
or her practice, he or she would
be required, among other things, to
dispense medicines from premises that comply with good dispensing
practice.
Clearly, then, a law
prohibiting certain persons from entering into a specific trade, or
providing that certain persons may no longer
continue to practice
that trade, would limit the choice element of section 22; in these
cases, there is a legal barrier to choice.
This would be the
case where, for instance, a licence is necessary to conduct a
particular trade, and that licence is withdrawn.
However, one
may also conceive of legislative provisions that, while not
explicitly ruling out a group of persons from choosing
a particular
trade, does so in effect, by making the practice of that trade or
profession so undesirable, difficult or unprofitable
that the choice
to enter into it is in fact limited.
These
provisions must also fall within the ambit of provisions that limit
choice, as they create an effective limit on choice.
Indeed, this court in Affordable Medicines seems to have taken into
account both the fact that the legislation in issue did not
present a
legal barrier to entry into the profession, and that it did not
impose an effective limit on that choice in that it would
not “deter”
persons from entering into the profession.”
[35]
(my
underlining)
[37]
The CON scheme does not purport to regulate the
healthcare workers and healthcare practitioners insofar as the
rendering of their
services are concerned. It rather, in its
terms, represents both a barrier to entry as well as being able to
continue with
the provision of those services.
[38]
Section 36(1) provides:
“
36.
(1) A person may not –
(a)
establish, construct, modify or acquire a
health establishment or health agency;
(b)
increase the number of beds in, or acquire
prescribed health technology at, a health establishment or health
agency;
(c)
provide prescribed health services; or
(d)
continue to operate a health establishment or
health agency after the expiration of 24 months from the date of this
Act took effect,
without being in possession of a certificate of
need.
[39]
Section
36(1) must be read together with Section 40.
[36]
Besides
criminalizing the provision of “prescribed health services”
in the absence of a certificate, the owner of a
private healthcare
establishment, healthcare provider or worker who does so, may be
liable on conviction to a fine or to imprisonment
for a period of up
to five years or both. It bears mentioning that
there is no definition of “prescribed
health services”
and so the CON scheme may operate as widely or as narrowly as
regulations (which have not yet been conceived)
may determine.
[37]
[40]
Any
person wishing to engage in any of the activities referred to in
section 36(1), must obtain a certificate of need. In
the
absence of the regulations contemplated in section 39, all that one
can have regard to is both the factors which the Director
General of
Health (DG) is required to take into account in terms of section
36(3)
[38]
and
(5)
[39]
for
either the issue or renewal of a certificate and the factors to be
considered in the regulations provided for in section 39(2).
None of the factors set out are particularly contentious. It is
what is not set out as a requirement for the DG to take account
of,
which is problematic. This is exacerbated by the provisions of
section 37 which provide that any certificate that is
issued or
renewal is only valid for a period of 20 years.
[41]
The object of the NHA and the CON scheme is to
establish a “
national health
system
”
which “
encompasses
public and health providers of health services
”
and
“
provides in an equitable manner
the population of the Republic with the best possible health services
that available resources can
afford.”
[42]
The scheme is silent on the extant rights of both
the owners of private health establishments, private healthcare
service providers
and private healthcare workers. Such extant
rights include their integration and professional reputations in the
communities
which they presently serve together with the significant
financial investments and commitments made by them to be able to
render
the services that they do.
[43]
It was argued by the applicants that the entire
purpose of the CON scheme is to compel private health establishments,
healthcare
providers and workers to relocate to new locations or
establish new facilities or practice their profession where the DG
deems
that it is necessary for them to do so.
[44]
The DG
holds the power, in terms of the scheme, to decide where new health
establishments will be established and where new medical
practices
can be opened. The power goes further, although it is well
accepted in our law that legislation unless it is specifically
provided for, cannot operate retrospectively.
[40]
Through
the provision of section 36(1)(d), the NHA has this effect.
[45]
The
provision provides that all existing healthcare establishments and
service providers have a 2-year grace period after the scheme
becomes
operative within which to make application for a certificate.
Thus, although the NHA does not specifically provide
for
retrospective operation, the effect of requiring all existing private
healthcare establishments and service providers to obtain
a
certificate after 2 years makes, for all intents and purposes, the
imposition of the scheme impermissibly retrospective.
[41]
[46]
Notwithstanding the effect on existing
establishments and providers, there is nothing to be found in either
sections 36(3), (5)
or section 39(2) which recognises the need to
take account of its social, professional and financial impact upon
those in respect
of whom it is imposed.
[47]
It was
argued that the failure to take account of the extant rights of those
to whom the scheme would apply may result in the arbitrary
deprivation of property. This is specifically prohibited by
section 25(1) of the Constitution. In this regard, it is
necessary to have consideration of the extent to which the rights of
a person to their property have been affected.
[42]
It is
not necessary that the property is taken from them. It is
sufficient that the rights that they enjoy in the property
are
impacted or that a previously enjoyed right is taken away.
[43]
The
test for determining whether this has occurred is an objective
one.
[44]
[48]
In
Agri
SA v Minister for Minerals and Energy
,
[45]
a
situation similar to the present was considered. In that
matter, which related to the conversion of existing mineral rights
to
prospecting and mining rights under the Mineral and Petroleum
Resources Development Act,
[46]
the
existing mineral rights remained in force for a period of one year
after the coming into operation of the Act pending the right
of the
holder of those mineral rights to apply for conversion. In that
case, unlike the present, if the holder of the mineral
right met the
requirements, the rights would be converted.
[49]
There is no such concomitant right in the present
instance. Existing private health establishments and healthcare
providers
are not entitled as of right, to either the issue of a
certificate or to the subsequent renewal of that certificate.
Thus,
while the refusal of a certificate would not deprive the owner
of a health establishment of the physical property, it would deprive
him of the right to use the property for that purpose – a
de
facto
deprivation when one considers
that health establishments, particularly hospital facilities, are
purpose - built at great cost and
cannot readily be converted for
other use. It is the substance of what the refusal to issue a
certificate in the first instance
or a renewal in the second
instance, would mean to the person applying for the certificate.
[50]
In
this regard, in
Agri
SA
[47]
,
the
Court held:
“
Additionally,
a proper meaning to give to the notion of acquisition should pose no
threat to the possibility of maintaining a sensitive
balance between
existing private property rights and the pursuit of transformation
that s 25 was designed to facilitate.
A
one-size-fits-all determination of what acquisition entails is not
only illusive but inappropriate particularly when an alleged
expropriation of incorporeal rights like mineral rights, is
considered. A case by case determination of whether acquisition
[deprivation]
has
in fact taken place presents itself as the more appropriate way of
dealing with these matters.”
[my
addition]
[51]
It was argued that in respect of existing health
establishments, imposing the obligation to obtain a certificate in
order to continue
operating is tantamount to the retrospective
imposition of the obligation upon the persons concerned and that any
failure or refusal
to issue a certificate to such persons would
amount to a deprivation of property as contemplated in section 25 of
the Constitution.
[52]
Existing healthcare establishments have where
apposite, been constructed in compliance with regulations which
govern this.
The construction of such establishments requires
significant capital outlay both in respect of the acquisition of land
where the
establishment is to be constructed and then for its
construction. It was argued on behalf of the eighth applicant,
and not
disputed, that it can cost in excess of R500 million to
construct such a facility.
[53]
The construction of such facilities is not a
matter of sentiment but is grounded in commercial viability. So
too is the position
with regards to every single person who operates
a health establishment whether as private rooms in a modest facility
or even from
home.
[54]
There
is in every instance, besides the intangible goodwill
[48]
and
public confidence that resides in such establishments, a significant
financial investment. The refusal to issue a certificate
for
any existing facility or for that matter, even if a certificate is
issued, to renew such certificate in 20 years may have a
deleterious
effect on the willingness of any person to invest in a healthcare
establishment.
[55]
It seems to me a matter of common sense that if
the time period over which a R500 million investment can be recovered
is limited
to 20 years, this will necessarily create a situation
where no investor would invest unless their investment (and more)
could be
recouped over the 20-year period. This would have the
effect of driving up the cost of healthcare in respect of not only
new facilities to be constructed but also existing facilities, the
value of which absent a certificate would be a fraction of their
true
worth.
[56]
While
it must be accepted that little has changed over the last 30 years
from when the Constitutional Court held in
Soobramoney
v Minister of Health, KwaZulu-Natal
[49]
that:
“
We
live in a society in which there are great disparities in wealth.
Millions of people are living in deplorable conditions
and in great
poverty. There is a high level of unemployment, inadequate
social security, and many do not have access to clean
water or to
adequate health care services. These conditions already existed
when the Constitution was adopted and a commitment
to address them,
and to transform our society into one in which there will be human
dignity, freedom and equality, lies at the
heart of our new
constitutional order. For as long as these conditions continue
to exist that aspiration will have a hollow
ring.”
It does not behove
government in pursuing transformation, to trample upon the rights of
some ostensibly for the benefit of the many.
Our law provides a
clear framework within which this is to be done.
[57]
For
the deprivation to be lawful, it must be neither arbitrary nor
procedurally unfair and interpreted broadly
[50]
.
In
First
National Bank of SA Ltd t/a Wesbank v Commissioner of South African
Revenue Service and Another
[51]
it was
held that:
“
It
is to be determined by evaluating the relationship between means
employed, namely the deprivation in question, and ends sought
to be
achieved, namely the purpose of the law in question.”
and
“
In
evaluating the deprivation in question regard must be had to the
relationship between the purpose for the deprivation and the
person
whose property is affected.”
and
“
Depending
on such inter-play between variable means and ends, the nature of the
property in question and the extent of its deprivation,
there may be
circumstances when sufficient reason is established by, in effect, no
more than a mere rational relationship between
means and ends; in
others this might only be established by a proportionality evaluation
closer to that required by section 36(1)
of the Constitution.”
[58]
The CON scheme is procedurally unfair.
Although the provisions of the scheme require a private healthcare
establishment or
healthcare service provider to apply to the DG for a
certificate and furthermore requires the DG in terms of section 36(7)
to provide
reasons if a certificate is refused or withdrawn, the CON
scheme fails to:
[58.1]
Require the DG to consider the rights and interests of private
healthcare establishments and healthcare providers
before issuing a
certificate in terms of section 36(3) of the NHA.
[58.2]
Require the DG to follow a fair process which would include the right
to be heard, when deciding what conditions
would be imposed for the
issue or renewal of a certificate. Furthermore, the CON scheme
does not require the DG to provide
reasons for any condition imposed
that would be adverse to the property rights of private healthcare
establishments and healthcare
providers.
[58.3] The
CON scheme in its entirety makes no provision for those affected by
it to make any substantive representations
before a decision is taken
by the DG that could lead to the deprivation of their property
rights.
[59]
In
City
of Tshwane Metropolitan Municipality v Link Africa (Pty) Ltd
[52]
the
Constitutional Court endorsed a higher threshold for extensive
restrictions on property rights and in this regard held:
“
Since
the nature of the deprivation we are concerned with here is extensive
and affects ownership of land, for it to escape arbitrariness
it is
not sufficient to merely establish a rational connection between what
s 22 authorises and the goal of achieving rapid roll
out of
electronic communications networks or facilities. Compelling
reasons must be advanced for the deprivation on the scale
that s 22
and the related provisions allow.”
[60]
Any deprivation of property rights or limitation
of the rights of any private healthcare provider, which occurs in
consequence of
the CON scheme, is irrational inasmuch as there is no
connection between the objects of the NHA, the provisions of
the scheme
and the consequence of its implementation.
[61]
Since the Constitutional Court has already found
that absent regulations, the CON scheme is inchoate, what is left is
section 36(3)
of the NHA.
[62]
The CON scheme specifically recognises that extant
rights will be affected upon its implementation. It, at the
same time,
empowers the DG to refuse to issue or renew a certificate
in terms of section 36(1) and, in so doing, vests in him the power to
take away those extant rights. Of course nowhere in the CON
scheme is there any provision that compels the owners of private
healthcare establishments or for that matter private healthcare
practitioners and private healthcare workers to either invest in,
establish or relocate themselves, their means and their skills to an
area that the DG has determined requires them and in respect
of which
he would issue a certificate.
[63]
The power to withhold the issue of a certificate
or the renewal of a certificate is nothing more than a blunt
instrument which would
be used by the DG to reduce the number of
private healthcare establishments and private healthcare providers
who could lawfully
provide medical care within a particular area in
the hope that having been deprived of their property and ability to
earn a living
they would without more accept the losses foisted upon
them and relocate to an area in respect of which the DG had
determined that
a certificate would be issued. Even if this did
occur, there would be no certainty. The sword of Damocles hangs
over
every private healthcare establishment and private healthcare
provider in perpetuity for so long as they are required to renew a
certificate of need.
[64]
Section 25(2) of the Constitution expressly
provides that property may not be expropriated without compensation
and furthermore
that in respect of such compensation, it must be just
and equitable, and either agreed upon or determined by a court.
[65]
Expropriation
is generally the compulsory deprivation of ownership rights, usually
by a public authority for a public purpose.
[53]
In
Agri
SA
,
it was held that –
“
Although
expropriation is a species of deprivation, there are additional
requirements that set expropriation apart from mere deprivation.
They are (i) compulsory acquisition or rights in property by the
state; (ii) for the public purpose or in the public interest,
and
(iii) subject to compensation.”
[54]
[66]
The CON scheme permits the DG to compel existing
private healthcare establishments and private healthcare providers
who administer
prescribed healthcare services to enter into
public-private partnerships and in so doing, to share all their
resources as a condition
of their right to operate and practice.
Section 36(6)(d) specifically provides that the DG may withdraw a
certificate of
need “
if the health
establishment or the health agency, as the case may be, or a
healthcare provider or health worker working within the
health
establishment, persistently violates the constitutional rights of
users or obstructs the State in fulfilling its obligations
to
progressively realise the constitutional right of access to health
services.”
[67]
The respondents argued that: “
the
Applicants in this matter represent the interests of the private
healthcare sector. That sector, due to its relatively
high
prices and its geographic concentration of infrastructure in
predominantly wealthy areas, caters to that small group of South
Africans who can afford medical aid or pay for services out of
pocket. In contrast, the public health system, administered
and
overseen by the National Department of Health and government, is an
overburdened and under-resourced system that provides fundamental
healthcare services, at no or minimal cost to more than 80% of the
South African population.”
[68]
This is the reason for which the sword of Damocles
is wielded by the DG. All persons who require a certificate of
need, especially
those who presently own or operate private
healthcare establishments, or private healthcare service providers,
will find themselves
compelled to accept the imposition of conditions
and their compliance with those conditions against the threat of the
withdrawal
of the certificate. This is by all accounts is an
expropriation of both property and services and to my mind, is akin
to
an attempt to indenture the private medical sector in the service
of the state.
[69]
The scheme violates section 25(2) of the
Constitution for two main reasons.
[69.1]
Firstly, the NHA does not provide a mechanism for providing affected
parties with just and equitable compensation
for the use of their
resources. Instead, the DG has the power to impose a condition
requiring the sharing of resources, failing
which the establishment
will not be issued a certificate and cannot operate lawfully.
[69.2]
Secondly, the CON scheme does not provide for a process in terms of
which an agreement could be reached
between the DG and affected
parties. The process that is provided for is an internal one in
terms of which an appeal against
a decision of the DG is lodged with
the Minister of Health. It is self-evident that even this
process would be fraught with
difficulty inasmuch as from the
time that the DG refused or withdrew a certificate, the affected
parties would be unable
to render any services (and earn income), as
doing so renders them liable in terms of section 40 to a criminal
conviction and fine
and/or imprisonment.
[70]
The applicants argue that the CON scheme in its
present form would be destructive of existing healthcare services.
In an already
under resourced society, existing healthcare
establishments and healthcare service providers may be prevented by
the refusal or
withdrawal of a certificate from providing healthcare
to those persons within the area in which they are presently located.
[71]
The
obligation of the State with regards to the provision of access to
healthcare services is both a positive, one inasmuch as,
subject to
available resources, services are maintained or new services made
available, and also a negative one inasmuch as it
has an obligation
to act in a manner that does not impede access to existing
healthcare.
[55]
[72]
The CON scheme will, in consequence of the
conditions imposed by the DG in terms of section 36(3), in the event
that those conditions
are accepted, have an impact on access to those
private health establishments and private service providers who
presently utilize
their services. If the conditions are not
accepted and no certificate is issued, the private healthcare
establishment and
private healthcare providers services are no longer
able to operate where they have been.
[73]
They
will be become unavailable to the persons who relied upon them. The
right to access private healthcare establishments and private
healthcare providers is accepted in our law. This is particularly
important in circumstances where the private healthcare
establishments
and providers are able to offer services not yet
available in the public sector.
[56]
[74]
Besides impacting upon the rights of the owners
and operators of private healthcare establishments, the CON scheme
will have a direct
impact upon the general public who use their
services.
[75]
Does the CON scheme meet the proportionality test
set out in section 36(1) of the Constitution? The section
provides:
“
The
rights in the Bill of Rights may be limited only in terms of law of
general application to the extent that the limitation is
reasonable
and justifiable in an open and democratic society based on human
dignity, equality and freedom, taking into account
all relevant
factors, including,-
(a)
the nature of the right;
(b)
the importance of the purpose of the
limitation;
(c)
the nature and the extent of the limitation;
(d)
the relation between the limitation and its
purpose; and
(e)
less restrictive means to achieve the purpose.”
[76]
The
enquiry is a global judgment on proportionality
[57]
described
by the Constitutional Court as follows:
“
The
approach to limitation is, therefore, to determine the
proportionality between the extent of the limitation of the right
considering
the nature and importance of the infringed right, on the
one hand, and the purpose, importance and effects of the infringement
provision, taking into account the availability of less restrictive
means available to achieve that purpose. The limitation analysis
that
follows will therefore first consider the extent of the limitation of
the right caused by [the impugned provisions], and will
then turn to
the purpose, importance and effect of [the impugned provision]. These
are the two issues whose relative weight determines
the outcome of
the limitation analysis. That analysis therefore concludes by
comparing the relative weight.”
[77]
More
recently in
Economic
Freedom Fighters v Minister of Justice and Correctional Services
[58]
it was
held that:
“
That
exercise entails a reflection on the historical origins of the
concept or right entrenched and the cardinal values it embodies.
The
analysis must be premised on the ever-abiding consciousness that the
impugned limitation violates rights and freedoms which
are guaranteed
by the supreme law of the Republic. And courts must approach this
exercise alive to the constitutional obligation
to uphold the rights
in the Bill of Rights. The contextualisation of the
interpretive exercise with reference to a free and
democratic society
as part of the standard for justifying the limitation of rights
speaks to the “very purpose for which
the [Bill of Rights] was
originally entrenched in the Constitution.
An
approach to the justification analysis that seems to move from the
premise that a legitimate governmental objective for the limitation
automatically renders the limitation reasonable and justifiable or
somehow
shifts
the burden to citizens to explain what is wrong with the limitation
or why their constitutional rights deserve protection,
would be
misplaced. The purpose of the limitation, however legitimate and
laudable, must still earn its juxtaposition to the right
it inhibits.
The burden to prove that it passes constitutional muster rests
primarily upon the State. And that is so because the
obligation to
give these rights the space to flourish rests on the same
State
that may limit them, in a constitutionally permissible manner
.”
[59]
[78]
The fact that the scheme infringes upon the
various rights discussed above and is in its terms unable to achieve
the purpose for
which it was enacted, so it was argued by the
applicants, evidences a failure on the part of the respondents to
discharge the onus
upon them.
[79]
This failure, it was argued, is apparent from the
fact that there is no rational connection between the scheme and its
objects which
would justify the limitations of the rights of the
owners of private healthcare establishments and private healthcare
providers.
[80]
The mere fact that a certificate would not be
issued or renewed does not mean that those concerned would
necessarily wish to, or
for that matter be in a position to relocate
their facilities or themselves and their families to where the DG
decided a certificate
could be issued. Added to this is the fact that
the closure of facilities or relocation of healthcare service
providers may have
serious consequences for those who are reliant
upon that them in the area where they operated.
[81]
The respondents for their part argued –
[81.1]
t hat since the main purpose of the CON scheme was that it was
“
intended to [i] regulate the
geographical distribution of health establishments and health
agencies as well as [ii] their compliance
with norms and standards,”
the limitation was reasonable.
For the reasons set out above, it is readily apparent that there is
no rational connection
between the CON scheme and the purpose for
which it was enacted. It is misguided to hold the view that the
CON scheme, in
implementation, by the withholding of certificates or
refusal to renew certificates will have the consequence of a
redistribution
or the establishment of new facilities.
Furthermore, absent the CON scheme, section 90 provides for the issue
of regulations
in regard to norms and standards and so the CON scheme
is, insofar as it is claimed that this is one of its purposes,
superfluous.
To demonstrate this, regard need only be had to the fact
that on 2 February 2018, “Norms and Standards Regulations
Applicable
to Different Categories of Health Establishments”
were published and are in force.
[81.2]
that insofar as existing health establishments are concerned, in
implementing the CON
scheme, the DG would not act in a manner that
would result in a reduction of facilities or infringement of the
right of access
to healthcare. The limitation of a
constitutional right cannot be justified on the basis that the
functionary tasked with
the implementation of the CON scheme would do
so in a well-meaning or benign manner. The CON scheme as it
stands, and in
particular, the provisions of sections 36(3) and 37
read together with section 40, amount to nothing more than the
arbitrary deprivation
of property and impairment of the right to
freely practice a trade, occupation or profession.
[81.3]
that there are no less restrictive means available to achieve the
objectives of the CON
scheme. The respondents however, did not
set out what other means are available or could be adopted so as to
enable this
court to consider whether the CON scheme is in fact the
least restrictive means that could have been adopted. Of the
factors
to be considered by the DG before issuing or renewing a
certificate, none have regard to the rights of the health
establishments
or agents or healthcare service providers. In
particular, there is no regard to the impact of the CON scheme on
existing
property rights or on the right of individual healthcare
service providers to freedom of movement and the practice of their
chosen
trade or profession.
[82]
Objectively,
the CON scheme is not rational. There is no nexus between the
scheme and its implementation and the purpose for
which it was
enacted. The onus to demonstrate that the scheme is
rational
[60]
and
that any limitation of rights in consequence of it passes
constitutional muster rests on the respondents.
[61]
For
the reasons set out above, I find that it does not and hence the
application for the relief sought must succeed.
[83]
It was
argued by the applicants that the appropriate remedy is to severe
sections 36 to 40 of the NHA from the Act. It was
argued that
since section 36 serves as the lynchpin of the scheme without it,
sections 37 to 40 are purposeless.
[62]
I
agree. Furthermore, as set out above, no other provisions of
the NHA would be impacted. Lastly, and perhaps most
significantly, given that the relevant sections have yet to be
proclaimed, there is no practical consequence to the operation of
the
NHA generally by the severing of these inoperative sections.
[84]
The applicants all argued that the constitutional
issues raised in this matter are of great importance and that in the
circumstances
the cost ought to follow the result. Since the
applicants have been successful and given the importance of the
matter to
not only the applicants but the general public at large, I
intend to make the order for costs that I do.
[85]
In the circumstances, I make the following order:
[85.1]
It is declared that
sections 36
to
40
of the
National Health Act 61
of 2003
are invalid in their entirety and are consequently severed
from the Act.
[85.2]
In terms of section 167(5) of the Constitution read together with
section 15
of the
Superior Courts Act 10 of 2013
and
Rule 16
of the
Rules of the Constitutional Court, the Registrar of this Court is
directed to lodge a copy of the order and this judgment,
within 15
days of the order, with the Registrar of the Constitutional Court.
[85.3]
The first and third respondents are ordered to pay the costs of the
application of the
first to eighth applicants which costs are to
include the costs consequent upon the engagement of two counsel.
A MILLAR
JUDGE
OF THE HIGH COURT
GAUTENG DIVISION,
PRETORIA
HEARD ON:
4 & 5 JUNE 2024
JUDGMENT DELIVERED ON:
24 JULY 2024
COUNSEL
FOR THE 1
ST
-
7
TH
APPLICANTS:
ADV.
MJ ENGELBRECHT SC
ADV. M DAFEL
INSTRUCTED BY:
SERFONTEIN VILJOEN
SWART
REFERENCE:
MR. SWART
COUNSEL FOR THE 8
TH
APPLICANT:
ADV. B LEECH SC
ADV.
A NGIDI
INSTRUCTED BY:
WERKSMANS ATTORNEYS
REFERENCE:
MR. N KIRBY/MS. S
PHAKATI
COUNSEL
FOR THE 1
ST
&
3
RD
RESPONDENTS:
ADV.
G ROME SC
ADV. ZZ MATABESE SC
ADV.
NS MTETO
ADV.
M SALUKAZANA
ADV.
S ABDOOL KARIM
INSTRUCTED
BY:
STATE
ATTORNEY, PRETORIA
REFERENCE:
MS.
N QONGQO
NO
APPEARANCE FOR THE SECOND RESPONDENT.
[1]
61
of 2003. The NHA was assented to on 18 July 2004 and most of its
provisions became operable on 2 May 2005.
[2]
See
section 38 of the Constitution.
[3]
Insofar
as individual health practitioners are concerned, there are separate
pieces of legislation dealing with the regulation
of the persons
concerned and the standard at which they are required to conduct
themselves. In regard to healthcare establishments,
extant
regulations in the form of regulation R158 of 1980 as amended in
1996 which remains in force in consequence of section
93(2) of the
NHA provides for the minimum requirements for health facilities.
Provincial legislation has in some instances
also been enacted to
operate in Regulation 158’s stead.
[4]
Proclamation
21 in GG 37501 of 31 March 2014.
[5]
2015
(4) BCLR 388 (CC).
[6]
Ibid
para
[15].
[7]
1996
(1) SA 984
(CC) at para [199].
[8]
2019
(3) SA 30 (CC) at paras [23] – [29].
[9]
See
Sapat
and Others v Director: Directorate for Organized Crime and Public
Safety and Others
1999
(2) SACR 435
(C);
Korabie
v Judicial Commission of Enquiry into Allegations of State Capture,
Corruption, Fraud in the Public Sector, including
Organs of State
and Others
[2022]
JDR 3033 (WCC) at para [54].
[10]
[2004] ZACC 11
;
2004
(6) SA 505
(CC) at para
[90]
.
[11]
[2006] ZACC 11
;
2006
(6) SA 416
(CC) at para
[62]
.
[12]
2023
(10) BCLR 1232
(CC) at para [20].
[13]
‘
Health
service’s mean- (a) health care services, including
reproductive health care and emergency medical treatment,
contemplated
in section 27 of the Constitution; (b) basic nutrition
and basic health care services contemplated in section 28(1)(c) of
the
Constitution; (c) medical treatment contemplated in section
35(2)(e) of the Constitution; and (d) municipal health services.”
The definition of ‘municipal health services’ in the NHA
expands the scope even further by including under its definition
“(a) water quality monitoring; (b) food control; (c) waste
management; (d) health surveillance of premises; (e) surveillance
and prevention of communicable diseases, excluding immunisations;
(f) vector control; (g) environmental pollution control; (h)
disposal of the dead; and (i) chemical safety, but excludes port
health, malaria control and control of hazardous substances.”
[14]
2009
(4) SA 362
(SCA) at para [37].
Moodley
v Minister of Education and Culture, House of Delegates
1989
(3) SA 221
(A) at 233E-F.
[15]
This
is apparent from the definition of ‘healthcare personnel’
and ‘healthcare provider’ in the NHA.
[16]
This
appears from the definition of ‘health establishment’
read together with the definition of ‘private health
establishment’ in the NHA.
[17]
131
of 1998.
[18]
Investigating
Directorate: Serious Economic Offences v Hyundai Motor
Distributers: in re Hyundai Motor Distributers (Pty)
Ltd v Smit NO
[2000] ZACC 12
;
2001
(1) SA 545
(CC) at para
[22]
.
[19]
Section
10.
[20]
Section
21.
[21]
Section
22.
[22]
Section
25(1).
[23]
Section
25(2).
[24]
Section
27(1).
[25]
2002
(4) SA 613 (CC).
[26]
S
v Makwanyane
[1995] ZACC 3
;
1995
(3) SA 391
(CC) at para
[144]
.
[27]
AmaBhungane
Centre for Investigative Journalism NPC v Minister of Justice and
Correctional Services
2021
(3) SA 246
(CC) at para [28].
[28]
Khumalo
v Holomisa
[2002] ZACC 12
;
2002
(5) SA 401
(CC) at para
[27]
.
[29]
Rayment
v Minister of Home Affairs
2024
(2) SA 591
(CC) at para [59].
[30]
Eskom
Holdings SOC Ltd v Vaal River Development Association (Pty) Ltd
2023
(4) SA 325
(CC) at para [304].
[31]
The
Pharmacy Case 7 BVerfGE 377 (1958). In this matter, the German
Federal Constitutional Court emphasised the connection
between the
right to choose a trade, occupation and profession and the value of
individual autonomy. It was held that work
“shapes and
completes the individual over a lifetime of devoted activity. . . it
is the foundation of a person’s
existence.”
[32]
See
for example, the Health Professions Act 56 of 1974; the Nursing Act
50 of 1978, the
Pharmacy Act 53 of 1974
, the Allied Health
Professions Act 63 of 1982 and the Dental Technicians Act 19 of
1979.
[33]
[2005] ZACC 3
;
2006
(3) SA 247
(CC) paras [59] – [60].
[34]
2017
(6) SA 331 (CC).
[35]
Ibid
paras
[65]–[69].
[36]
“
40.
(1) Any person who performs any act contemplated in section 36(1)
without a certificate of need required in terms of that
section is
guilty of an offence.
(2) Any person
convicted of an offence in terms of subsection (1) is liable on
conviction to a fine or to imprisonment for a period
not exceeding
five years or to both a fine and such imprisonment.”
[37]
See
Case
and Another v Minister of Safety and Security and Others; Curtis v
Minister of Safety and Security and Others
[1996] ZACC 7
;
1996
(3) SA 617
(CC) at para
[79]
.
[38]
“
(3)
Before the Director-General issues or renews a certificate of need,
he or she must take into account–
(a) the need to
ensure consistency of health services development in terms of
national, provincial and municipal planning;
(b) the need to
promote an equitable distribution and rationalization of health
services and health care resources, and the need
to correct
inequities based on racial, gender, economic and geographical
factors;
(c ) the need to
promote an appropriate mix of public and private health services;
(d) the demographics
and epidemiological characteristics of the population to be served;
(e) the potential
advantages and disadvantages for existing public and private health
services and for any affected communities;
(f) the need to
protect or advance persons or categories of persons designated in
terms of the Employment Equity Act, 1998 (Act
No. 55 of 1998),
within the emerging small, medium and micro-enterprise sector;
(g) the potential
benefits of research and development with respect to the improvement
of health service delivery;
(h) the need to
ensure that ownership of facilities does not create perverse
incentives for health service provides and health
workers;
(i) if
applicable, the quality of health services rendered by the applicant
in the past;
(j) the
probability of the financial sustainability of the health
establishment or health agency;
(k) the need to
ensure the availability and appropriate utilisation of human
resources and health technology;
(l) whether the
private health establishment is for profit or not; and
(m) if applicable,
compliance with the requirements of a certificate of non-compliance.
[39]
“
(5)The
Director-General may issue or renew a certificate of need subject
to-
(a)
Compliance by the holder with national
operational norms and standards for health establishments and health
agencies; as the case
may be; and
(b)
any condition regarding –
(i)
the nature, type or quantum of services to be
provided by the health establishment or health agency;
(ii)
human resources and diagnostic and therapeutic
equipment and the deployment of human resources or the use of such
equipment;
(iii)
public private partnerships;
(iv)
types of training to be provided by the health
establishment or health agency; and
(v)
any criterion contemplated in subsection 3
[40]
Curtis
v Johannesburg Municipality
1906
TS 308.
[41]
Veldman
v Director of Public Prosecutions, Witwatersrand Local
Division
2007 (3) SA 210
(CC) fn. 51.
[42]
Jordaan
and Others v City of Tshwane Metropolitan Municipality and Others
2017
(6) SA 287
(CC) at para [59] where it was stated that “. . .
Meaning
that the extent of the intrusion must be extensive to have a legally
significant impact on the rights of the affected
party.”
[43]
Offit
Enterprises (Pty) Ltd v Coega Development Corporation (Pty)
Ltd
2011 (1) SA 293
(CC) at para [41].
First
National Bank of SA Ltd t/a Wesbank v Commissioner, South African
Revenue Service and Another; First National Bank of SA
Ltd t/a
Wesbank v Minister of Finance
[2002] ZACC 5
;
2002
(4) SA 768
(CC) at para
[114]
.
[44]
Shoprite
Checkers (Pty) Ltd v Member of the Executive Council for Economic
Development, Environmental Affairs and Tourism, Eastern
Cape
2015
(6) SA 125
(CC) at para [73].
[45]
2013
(4) SA 1 (CC).
[46]
28 of
2002.
[47]
Ibid
paras
[63]-[64].
[48]
National
Credit Regulator v Opperman
2013
(2) SA 1
(CC) at paras [58] and [63].
[49]
[1997] ZACC 17
;
1998
(1) SA 765
(CC) at para
[8]
.
[50]
Reflect-All
1025 CC and Others v MEC for Public Transport, Roads and Works,
Gauteng Provincial Government, and Another
2009
(6) SA 391
(CC) at para [36].
[51]
[2002] ZACC 5
;
2002
(4) SA 768
(CC) para [100] generally, but specifically sub-paras
(a), (c) and (g).
[52]
2015
(6) SA 440
(CC) at para [61].
[53]
City
of Cape Town v Helderberg Park Development (Pty) Ltd
2008
(6) SA 12
(SCA) at para [40].
[54]
Agri
SA
,
para [67].
[55]
Government
of the Republic of South Africa v Grootboom
2001
(1) SA 46
(CC) para [34].
[56]
Law
Society of South Africa v Minister of Transport
2011
(1) SA 400
(CC) at paras [87] and [100]. See also
Chaouli
v Quebec
2005 SCC 35
;
[2005]
1 SCR 791
where the Canadian Supreme Court found that a law that
prohibits a person from acquiring private medical services (in
circumstances
where public resources could not respond timeously to
all the public health demands) is an unjustifiable infringement of
the
right to life and security
[57]
S
v Manamela
2000
(3) SA 1
(CC) at para [34] read together with para [66].
[58]
2021
(2) SA 1
(CC).
[59]
Ibid
paras
[39] – [40].
[60]
NL
and Others
v
Estate Late Frankel and Others
2018
(2) SACR 283
at para [48].
[61]
Pharmaceutical
Manufacturers Association of South Africa: In re Ex Parte President
of the Republic of South Africa
[2000] ZACC 1
;
2000
(2) SA 674
(CC) at para
[86]
.
[62]
Coetzee
v Government of the Republic of South Africa
[1995] ZACC 7
;
1995
(4) SA 631
(CC) at para
[16]
.
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