STAKEHOLDER ENGAGEMENT
Stakeholders are the individuals and groups who have an interest in, or who are affected by, Group business operations and the manner in which business objectives are achieved. Stakeholders can influence the ability to create value over time for any business.
Being responsive to stakeholders is a critical element of how the Group operates. Our stakeholders were identified as client medical schemes, shareholders, regulators, providers of Information Technology, business partners, employees, trade unions and government.
One of the key stakeholder groups is shareholders, as they are the providers of financial capital. The AfroCentric Board and executive management are responsible for managing the Group in a sustainable manner, to create value for shareholders into the long term. Sustainable shareholder value can only be realised by identifying and creating sustainable value for all other stakeholder groups that materially influence the Group’s ability to create value.
| Stakeholder group | Overview | Impact and engagement | Expectations/concerns | How we respond | ||||||||||||||||||||||
Our clients – Medical Schemes |
Open Schemes:
Bonitas, Fedhealth Closed schemes: Other schemes: |
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 |
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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 |
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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 |
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| 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 |
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| 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 |
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| The Johannesburg Stock Exchange
The JSE offers secure, efficient primary and secondary capital markets across a diverse range of securities, supported by its post-trade and regulatory services |
The JSE is the presiding authority over AfroCentric’s public listing. It creates a healthy exchange for trade and engagement and the relationship is managed by Group Finance with the Groups corporate sponsors, Sasfin Securities |
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Competition Commission |
The Competition Commission ensures that AfroCentric does not act anti-competitively, and more broadly controls restrictive practices and ensures fair competition in the industry. Engagement takes place via Group Compliance as required |
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Providers of Information Technology |
Helios provides network connectivity and outsourced technology solutions
Allegra provides a platform for all clinical information management and pharmaceutical care through a software solutions Allegra also has a synergistic relationship with Helios. Allegra provides technology solutions that impact and are relied upon by Group companies and clients alike. Therefore, Allegra’s external interface impacts on the Group’s value creation and reputation |
Efficient and reliable operational functionality of IT systems is a critical enabler in a business powered by technology. The relationship with Helios is a key dependency as Medscheme is Helios’s key client
Allegra provides the platform for healthcare networks to supply their services and share data with the funders like Polmed. The result is better patient care through co-ordination and data sharing. The platform enables every step, from patient booking, to visit data collection, claiming and sharing of consented data with the funder in real time The extensive pharmacy clinic network footprint enables the group to deliver new innovative wellness and disease risk management solution quickly in collaboration with the providers. This model is now being expanded to pharmacy dispensing and other healthcare networks like biokineticists, Independent nurses and primary care practitioners. This will enable Medscheme and other companies in the group to deliver an enhanced member experience and help manage the funders risk |
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Business partners |
Medscheme
Medscheme provides a full spectrum of health administration and health risk management services Helios |
Medscheme is the largest revenue generator in the Group. Its systems and processes need to be operational at all times making the relationship with Helios of vital importance. Due to its size, Medscheme’s efficiencies impact other companies in the Group, and it in turn is impacted by their sound financial management
Engagement with Medscheme takes place continuously |
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AfroCentric employees |
The Group’s employees who perform core functions within the organisation | AfroCentric employees are the means by which the value proposition is operationalised. The Group has a responsibility to clients to ensure all core employees are in place for the smooth running of the organisation
Employees are engaged regularly through internal communication channels such as the company intranet. Learning and development is a continuous process supported by the AfroCentric learning academy |
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| Trade unions | National Education, Health and Allied Workers Union (“NEHAWU”) is the union for workers from the Education, Health, Government and Social Welfare sectors | Trade unions have the ability to stagnate business operations through industrial action
Engagement is conducted as required, primarily if there are any matters regarding terms of employment. The relationship is managed by the Group’s Human Capital function |
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Banks and other financial institutions |
Banks are used to invest and manage the Group’s funds | The Group is not highly geared. All excess cash reserves are invested with financial institutions to generate a return. The investment income forms part of the Group’s profitability and is used within Group’s operations in the ordinary course of business. Engagement takes place daily with financial institutions, managed by Group Finance | N/A | N/A | ||||||||||||||||||||||
Government |
National Health Insurance (“NHI”), a proposed initiative from government to ensure that all South Africans have access to appropriate, efficient and quality health services | Government is a key stakeholder particularly so with the advent of a unified NHI, due to be phased in over a 14-year period. Group revenue could be negatively impacted in the longer term if there is a significant move away from private healthcare funding. Equally, revenues could be positively impacted if tenders are issued to the private sector for service delivery
There is ongoing engagement with government (predominantly the Department of Health) to ensure there are adequate procedures in place for the NHI to run smoothly and for AfroCentric to bid for any opportunities that may arise |
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