Three of Western Cape’s academic hospitals in South Africa may face a financial crisis due to a budget deficit of at least R570 million. The Groote Schuur Hospital, Tygerberg Hospital, and the Red Cross War Memorial Children’s Hospital are struggling with cutbacks in service delivery, which may lead to a depletion of their funds by January 15. The crisis is due to an unexpected public sector wage increase for which the government did not provide funding, leading to a wage deficit of R8.7 billion.
