Netcare, SA’s third-largest hospital operator by market value, says it is scaling back health and management services in Lesotho and handing over a hospital and primary healthcare facilities early amid a payment dispute with that country’s government.

The multimillion-rand deal to build and manage Lesotho’s biggest hospital was supposed to be a model public-private partnership. But the agreement was marred by a wrangle between Netcare and the Lesotho government...

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