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AFROCENTRIC GROUP
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HOW WE CREATE VALUE
MATERIALITY CONTINUED
EXTERNAL ENVIRONMENT
Despite the Rand gaining some ground against international
currencies towards the end of 2016, political uncertainties
continued, and fiscal policy has remained under pressure
following the recent ratings downgrade and consequent
technical recession.
Rising costs of living in South Africa have constrained the
middle-class consumers who would normally invest in our
medical schemes.
IMPACT ON SOUTH AFRICAN
HEALTHCARE SECTOR
The volatile Rand has impacted the price of medical imports
from countries with stronger currencies. Although the weakened
Rand has strained the healthcare sector, it has also presented
an opportunity to enter different markets. Inflation and the
declining economy have reduced consumers’ disposable
income. Many consumers have selected cheaper medical
scheme options and, in some cases, have chosen not to pay
for private healthcare insurance.
The younger and healthier consumers are increasingly
relying on public sector facilities for specialised care, and are
resorting to low-cost insurance alternatives as opposed to
medical aid schemes. The reduction in younger scheme
members has put some medical schemes in an “actuarial death
spiral”. As modern healthcare has advanced, it has increased
the life expectancy of the population. However, with an increase
in older scheme members, there is typically a related
increase in healthcare utilisation, evidenced in increased claims.
An increase in claims necessitates an increase in member
contributions or premiums.
NATIONAL HEALTH INSURANCE
Collaborations between the private and public sector are vital to the National Health Insurance (“NHI”). AfroCentric is well positioned
and committed to supporting the government in facilitating universal health coverage.
NHI NEEDS
HOW AFROCENTRIC IS POSITIONED TO SUPPORT NHI
Health information management, monitoring and
evaluation:
develop and maintain a national health
information system which commissions and coordinates
research, implements disease notification surveillance
programmes, and monitors and evaluates strategic
health programmes.
AfroCentric, through its IT subsidiary,
Helios IT Solutions
(“Helios”), manages a range of IT solutions specialising in
healthcare and its technical support.
Medscheme also has a highly experienced team that has expert
understanding and capability in performing various analyses on
a population to identify health needs, structure required
interventions and monitor outcomes.
Improve access to quality
health services
by developing
and implementing policies for universal health coverage,
health financing reform, integrated health systems
planning, monitoring and evaluation, and research.
Through
Medscheme
, AfroCentric possesses the necessary
skills and experience in health risk management as well as health
administration and is willing to share this expertise with the
architects of the NHI. These tools could provide government with
the means to implement its plans for a reimbursement strategy
that rewards evidence-based healthcare and effective use of
resources.
Medscheme also has the models that benchmark and monitor
general practitioners (“GPs”), specialists and hospitals on cost,
quality and health outcome metrics.
Improve
access to chronic medicines
, and alleviate
pressure on primary healthcare facilities by ensuring that
1.5 million patients receive chronic medicine through a
centralised chronic medicine dispensing and distribution
system by 2019/20.
Pharmacy Direct
distributes and delivers medication to both
urban and rural areas for medical scheme clients as well as
for government’s Central Chronic Medicine Dispensing and
Distribution (“CCMDD”) programme. Deliveries to patients’
homes, local post offices or community centres have reduced
the number of patients’ visits to the healthcare facility.
Through Curasana, we provide medicine at wholesale prices to
government entities, and, through Activo Health, we produce
medication generics at a lower price to ensure easier and
affordable access.