NHI stands for National Health Insurance, which is a system of health insurance that insures a national population against the costs of health care. It may be administered by the public sector, the private sector, or a combination of both. In some countries, contributions to the system are made via general taxation and therefore are not optional even though use of the health system it finances is. Most people paying for NHI will join it. Where an NHI involves a choice of multiple insurance funds, the rates of contributions may vary and the person has to choose which insurance fund to belong to.

In South Africa, NHI is a health financing system that is designed to pool funds together to provide access to quality and affordable personal health services to all South Africans based on their health needs, irrespective of their socio-economic status. It is a fund that will pay for health care for all South Africans, and there will be no fees charged at the health facility because the NHI fund will cover the costs of care. NHI will provide finance for healthcare, but it will not manage hospitals, clinics, or the practices of health professionals. NHI will enter into contracts with private and public hospitals, as well as private health practitioners and public clinics, to provide services. A patient will be able to choose any NHI-contracted provider near to them for regular health needs. Public hospitals and clinics will be made to upgrade their facilities.

In summary, NHI is a system of health insurance that insures a national population against the costs of health care. It may be administered by the public sector, the private sector, or a combination of both. In South Africa, NHI is a health financing system that is designed to pool funds together to provide access to quality and affordable personal health services to all South Africans based on their health needs, irrespective of their socio-economic status.