Medscheme
Medscheme and AfroCentric to Expand African Exposure
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A deal with Sanlam to acquire 60% of AfroCentric shares will help the group and its units, including Medscheme, to expand further of the continent. Already one of the leading players in the medical aid administration industry, Medscheme is buoyant about the future with a lot of positivity driving the brand onwards and upwards.
Partnering with healthcare and medical aid providers that have a proven reputation is a no brainer in South Africa where it simply isn’t worth taking the risk around such an important issue. With some of the world’s best doctors, surgeons, and consultants active across South Africa’s hospitals and clinics, there is always a solution to problems, and with the advent of medical technology bringing what was previously thought of as impossible much closer, there is much to be excited about in the local space. Obvious issues around cost, accessibility, and reliability are regular and continue to be addressed, but the underlying essence remains clear: a good medical aid scheme will provide a benefit.
The majority of hospitals in the country continue to deal with hospitals directly, and the system is tried and tested. Even with the uncertain onset of NHI and a universal health system, medical aid schemes will continue to provide an in-demand service.
One of the most consistent and highly-regarded medical aid administrators is Medscheme. Headquartered from Roodepoort and covering the whole country as well as operations in Botswana, Namibia, eSwatini, Zimbabwe, and Mauritius, Medscheme administers for a number of the leading medical aid schemes that reach more than 3.8 million people. The organisation is also the leading health risk management services provider in SA, and a provider of BPO services in Mauritius.
“Transforming healthcare” is the company’s vision, and “enhancing quality of life” is the company’s purpose. To achieve both, Medscheme holds the mission of “innovating a new integrated model of sustainable healthcare that measurably improves access to quality healthcare.”
Trusting in these principles are a number of well-known brands and their medical aid schemes including Barloworld, Bonitas, AECI, Fedhealth, SAMWUMED, POLMED, SABC, and more.
FRESH INVESTMENT
With ownership from AfroCentric – the local black-owned investment company – Medscheme certainly has its finger on the pulse when it comes to healthcare in SA.
In May, AfroCentric received investment from Sanlam – one of the largest financial service providers in South Africa – as it took a 60% share in the company. Already active in financial planning, investments, insurance, retirement, and wealth management, Sanlam has long been looking for a deeper foothold in healthcare. With the acquisition of this new stake, the company will have access to Medscheme expertise as well as several other health assets. Key for AfroCentric is reducing the cost of healthcare and providing affordable products for all. Both saw the enormous benefits of strategic partnership.
“We are delighted to welcome AfroCentric shareholders, management, and key stakeholders into the Sanlam Group,” said CEO Sanlam Corporate, Kanyisa Mkhize. “Sanlam prides itself on delivering superb outcomes for all our stakeholders, and we are confident that this transaction will complement our existing capabilities and services, as well as deliver excellence in healthcare for our customers.”
AfroCentric CEO Ahmed Banderker said: “This acquisition demonstrates the company’s immense value as a diversified healthcare enterprise and a tangible commitment to positive change in the South African healthcare industry.
“This milestone signifies the power of the union of two industry giants, harnessing our collective strengths and expertise as we revolutionise the healthcare landscape in Africa. Between Sanlam and AfroCentric there is a collective drive and commitment towards affordable and accessible healthcare.
“We are not merely broadening our reach, amplifying innovation, and expanding our capabilities, we are resolutely pursuing the realisation of equitable healthcare. Beyond Covid-19 and the current economic climate, this acquisition couldn’t have come at a more crucial time for the majority of South Africans who find quality healthcare options out of reach.”
For Medscheme, the deep and vast experience of Sanlam, as well as its already-established customer base, will bring opportunities.
According to the company, it remains “committed to focusing on quality and cost through interventions geared towards improving the value of affordable healthcare, adopting a structured approach to health risk management based on secure value judgments in partnership with healthcare providers and medical aids, and measuring quality and costs incurred at all levels of care to support ongoing refinement of tiered reimbursement models,” leading to increasingly meaningful funder-provider partnerships.
HEALTHCARE FOCUSED
At the same time, Banderker is clear that AfroCentric is a healthcare business first and foremost and cares deeply for the South Arican industry and its users. “We all know public healthcare has been struggling to keep up with infrastructure decay, capacity issues and skills shortages,” he said, commenting on the annual budget from Finance Minister, Enoch Godongwana. “The full budget report illustrates continued budgetary support for government’s health policy direction. It is optimistic that this fund allocation will help address service backlogs and alleviate critical funding pressures in healthcare personnel, medicine, laboratory services, medical supplies and other vital goods and services,” he added, happy that healthcare was at least part of the budgeting thought process.
At the end of last year, AfroCentric was celebrating and demonstrating the power of true leadership when Group Chairman Dr Anna Mokgokong was lauded with the 2022 award for ‘Women Who Make a Difference’ by the Women’s Forum. A powerful and wide-reaching network, the Women’s Forum is home to thousands of female leaders, game changers, and a few Noble Peace Prize winners. In South Africa, there a more than 100 women in the group and Mokgokong wash highlighted for her philanthropic work and activism in the boardroom where she is an advocate of promoting women to leadership roles.
AfroCentric and Medscheme are keen on transformation and diversity and the group encourages discussions around what more can be done.
“We are immensely proud and delighted that our Dr Mokgokong has been recognised for her achievements,” said Banderker. “Her contribution to the AfroCentric Group is just one example of those achievements. As a medical doctor who merged her passion for saving lives with that of growing sustainable businesses, Dr Mokgokong has provided strong guidance and advice towards the AfroCentric Group’s intent to enable access to affordable healthcare. This is also reflected in many of our inroads in the healthcare industry.”
COMMUNITY SERVING
Philanthropy was on show again when Medscheme and AfroCentric were on hand to support Vision 4 Change – a non-profit with the goal of supporting children in Cape Town with eyesight challenges.
The company and group supported a fitment day at Silverleaf and Dunoon primary schools in Cape Town – both classed as under-privileged – with a team of optometrists conducting tests for those with expected sight issues, and creating prescriptions and sourcing free glasses.
“Many learners struggle with eyesight ailments but do not have access to vision care,” said Palesa Makhetha, General Manager Group Marketing and Corporate Affairs.
“Unfortunately, the cost of eyecare makes it inaccessible to millions of South Africans and our school-going youth are the ones who suffer the most. We are honoured to partner with Vision 4 Change in this significant initiative to give our learners vision.
“As the AfroCentric Group, we have always taken pride in our commitment and ability to enable access to quality, affordable healthcare. Whether we do it by innovating new products or services or by empowering our communities, we transform healthcare, making it affordable for the people of South Africa. This is because we believe that when it comes to health coverage, no one should be left behind.”
The idea here was to address potential issues before they become problems, and allowing those learners to participate in the classroom, paving the way for strong education and careers in the future.
Whatever the future holds for the medical aid industry and NHI, these young people will forever hold AfroCentric and Medscheme in high regard, and they will hopefully pick up the skills and attributes required to change the industry for the better. Medscheme has become one of the best by investing in South Africa and its vast resources, and this will continue.
“Our proven combination of client-centricity and expertise is founded on excellence in corporate governance and world-class information technology,” the company says. “These attributes position Medscheme as the ideal business partner for corporate clients and medical aids who seek to offer quality health risk management and affordable health insurance to their members and employees,” reminding all that partnerships with trustworthy healthcare organisations remain as vital as ever.