The government's attempt to set up a health costs watchdog would have dire consequences, the SA Medical Association (Sama) said on Friday.

The association, which represents doctors, was commenting on the proposed National Health Bill.

Sama said it wanted to reiterate its strongest objection to the measure, and that it was disturbed by what it said was the attempt to make the department of health's national health reference price list an ethical or maximum tariff.

"This is an unethical and diabolical step for all concerned in healthcare," Sama said in a statement.

It said the draft bill sought to create a ministerially-appointed facilitator and tribunal with responsibility for resolving pricing disputes and facilitating negotiations on pricing.

What was needed was not a watchdog, but a "proper structure to facilitate pricing, based on appropriate information, in a particular sector of the market".

The bill would have dire consequences for health care, and would add to the confusion around the price list.

Sapa