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AFROCENTRIC GROUP
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HOW WE CREATE VALUE
BUSINESS MODEL
We
create value
for our stakeholders by pursuing
sustainable growth
.
The Group’s business model depicts how our integrated business activities, products and services drive efficiencies in the healthcare
value chain, and how these aid the delivery of sustainable healthcare services and easier access to affordable, quality healthcare
for scheme members.
Our objective of providing health administration and ensuring effective health risk management is influenced by our external
environment, risks and opportunities, and stakeholder expectations.
AfroCentric has grown its footprint across the healthcare industry through strategic acquisitions and partnerships. Our Group
structure consists of operating companies that provide products and services in the healthcare sector, positioning us to be able to
provide integrated healthcare solutions.
For our desired output to be achieved and for value to be created, one or more of six distinct capital inputs are increased,
decreased or transformed into outcomes, and some trade-offs between them are incurred through our business activities.
These six capitals are outlined alongside and have been linked to relevant strategic objectives. Furthermore, the business model is
illustrated on pages 24 and 25.
HEALTHCARE VALUE CHAIN
Michael Porter describes the term
value chain
as a collection of processes, inputs and outputs that take place to
produce a product or service.
The healthcare value chain, like most other industries, includes manufacturers, wholesalers, distributors, providers,
professionals (nurses, midwives, etc.), and consumers (patients); with the added complexity of different levels of
government, their policies, and secondary industries such as private providers and insurance companies. As a result,
the healthcare value chain is complex, and highly interdependent – sometimes making it difficult to see the real value of
the care being delivered, and its actual cost.