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AfroCentric INTEGRATED ANNUAL REPORT 2016
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Stakeholder group Overview
Impact and engagement
Expectations/concerns
How we respond
Our clients
– Medical
Schemes
Open Schemes:
Bonitas, Fedhealth
Closed schemes:
Polmed, SasolMed,
MB med, AECI, Barloworld,
NedGroup, Old Mutual,
Parmed, SABC, Samwumed
Other schemes:
GEMS, Medshield
Medical schemes have influence
over who is appointed as
administrator and health risk
providers of the scheme. The
quality of the end-to-end service
delivered to our clients has a
direct impact on their ability to
retain their customers i.e. the
member and, in turn, impacts
their satisfaction levels with
Medscheme
To manage these relationships,
clients are engaged regularly at
formal meetings. Additionally, the
CEO of both Medscheme and
the AfroCentric Group engage
regularly with these key clients
Quality of administration
and health risk
management
Rates (costs of services)
Reputation-related
matters
Capacity requirements
Level of transformation
Cost containment
(cost consciousness)
Client service
Transformation
Shareholders
JSE-listed
Shareholders are one of the
key stakeholders of the Group.
Shareholders impact the Group
through their role as decision-
makers via their votes at Annual
General Meetings (“AGMs”) and
accordingly, AfroCentric has a
duty to maximise shareholder
returns. Engagement takes
place through a formal structure
of meetings such as the AGM,
reporting at quarterly Board
meetings and sub-committee
meetings
Long-term value growth
Improved market share
Demonstrate industry
leadership
Dividends
Diversifying revenue
sources
Growth
Material
regulators
Council for Medical
Schemes
The Council for Medical
Schemes (“CMS”) is a
statutory body established
by the Medical Schemes
Act (131 of 1998) to provide
regulatory supervision of
private health financing
through medical schemes
AfroCentric is dependent on
the CMS for the accreditation to
conduct healthcare administration
and health risk management. Any
proposed amendments to benefit
options must be approved by the
CMS. AfroCentric is required to
provide electronic submissions
of the financial overview of each
scheme, a process managed by
Group Compliance
Ensure Medscheme is a
leading administrator and
health risk management
provider
Approval of changes to
benefit options
Regulatory oversight
Ensure capital adequacy
Our vision,
page 11
Medicines Control Council
The Medicines Control
Council (“MCC”) applies
standards laid down by
the Medicines and Related
Substances Act, which
governs the manufacture,
distribution, sale and
marketing of medicines
The MCC regulates the conduct
of pharmaceutical manufacturers
and distributors. Pharmacy Direct
and Activo Health are impacted
by amendments to regulations
and must also comply with MCC
licensing requirements
The MCC expect the
implementation of Standard
operating procedures that
ensure good manufacturing
practice and Good Pharmacy
practice is adhered to
Non-adherence could lead
to penalties or withdrawal of
license. It is a model of self-
regulation and unscheduled
inspections takes place from
time to time
Pharmacy Direct,
page 75
South African Pharmacy
Council
The South African Pharmacy
Council (“SAPC”) has
the mandate to protect,
promote and maintain
the health, safety and
wellbeing of patients and
the public ensuring quality
pharmaceutical service for
all South Africans
The SAPC regulates pharmacists,
pharmacy support personnel
and pharmacy premises in South
Africa. Pharmacy Direct has to
implement Good Pharmacy
Practice and comply to the
Pharmacy Act, 1974 (Act 53
of 1974)
The MCC expect Pharmacy
direct to implement and
follow practices that promote
Good Pharmacy practice
while being adherent to the
Pharmacy Act. Should there
be any non-adherance to
the Pharmacy Act, the SAPC
may impose penalties on
Pharmacy Direct. Severe
contraventions of the act
may result in a loss of our
license. Pharmacy Direct has
had recent inspections by the
Pharmacy councils and had
no findings against them
Pharmacy Direct,
page 75
STRATEGY (continued)