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AfroCentric INTEGRATED ANNUAL REPORT 2016
75
Operational reviews
PHARMACY DIRECT, CURASANA AND ACTIVO HEALTH
Pharmacy Direct is the retail arm of AfroCentric’s vertically integrated pharmaceutical operations. These
include Curasana, a medicines wholesaler owned 100% by AfroCentric and Activo Health, a drug
importer and rights-holder for the South African market, in which AfroCentric has a 26% stake with a
further option to buy additional equity.
OVERVIEW
Pharmacy Direct is a premier courier pharmacy in South
Africa, supplying chronic medication to patients across the
country, including those in remote rural areas.
Regular delivery of medication is a critical enabler of patient
adherence to therapeutic regimes, often the single biggest
factor in a patient’s response to treatment. This is particularly
true in rural areas, where 75% of Pharmacy Direct’s patients
reside, and where the nearest pharmacy may be out of reach.
Pharmacy Direct does not carry the overhead of a large
network of properties and employees and is able to
offer medicines more cost-effectively than conventional
retail pharmacies through lower dispensing fees and no
administration or delivery cost. The cost of medicine is
effectively managed though formulary compliance to
reference pricing agreed with Medical Schemes.
Medical Aid Schemes recognise the value that a courier
pharmacy can add, and Pharmacy Direct is currently a
designated or preferred service provider to most Medical
Schemes in the private market, including Bonitas, Polmed,
Massmart, Liberty, Fedhealth, Medshield and Hosmed.
Pharmacy Direct is a designated service provider to the
National Department of Health in the distribution of
medication to patients on the CCMDD Programme. This
internationally funded project aims to:
• Improve access to chronic medicines
• Improve service delivery
• Improve patient experience
• Develop a business model for private sector involvement
in the provision of healthcare services in the public sector
• Pilot the project for NHI implementation
Pharmacy Direct has also recently been appointed as the
Designated Service Provider for managing, distributing
and dispensing chronic medication to Compensation of
Occupational Injuries and Disease (COID) patients which will
add a potential additional 50 000+ patients.
STRATEGY
Pharmacy Direct is a patient-centered business, with
a strategic focus on making healthcare accessible to
all. Accessibility is primarily equated with affordability
and convenience. Pharmacy Direct operationalises this
commitment by charging lower dispensing fees, no
administration and delivery fees, while delivering medicine at
a patient selected address.
The following strategic objectives reflect this strategy:
Strategic objective
Why this is important
Link to Group
strategy
Adding value to AfroCentric
as an integrated part of the
Group’s health value chain
Pharmacy Direct’s ‘backward integration’ into the pharmaceutical supply
chain adds to the diversification of AfroCentric’s revenue sources. The
Company’s proposition is embedded throughout the value chain of the
Group via partnerships with Allegra and Medscheme.
Adding value to clients
through understanding the
operations and strategic
priorities of each Scheme
and successfully aligning the
business in support
Having a clear understanding of the individual client’s priorities and
operational functions enables Pharmacy Direct to provide a tailored
service to each Medical Scheme and to translate these through
communication, actions and interventions to the patient, thus delivering
end-to-end customer care. The Company’s operating procedures keep
abreast with client process enhancements, contributing to the longevity of
the client relationship and yielding opportunities for growth, as interaction
with schemes can provide access to the cohort of patients not currently
obtaining medication from Pharmacy Direct.
Pharmacy Direct is a patient-centred
business, with a strategic focus on making
healthcare accessible to all
A proud Level 1 B-BBEE
contributor on the revised codes