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INTEGRATED REPORT 2017
REDUCE THE COST OF HEALTHCARE
One of our key objectives is to provide access to quality affordable healthcare. We are reducing the costs of healthcare for our
clients and their beneficiaries through value chain optimisation. This is supported by better use of technology and data to reduce
inefficiencies. AfroCentric has adopted a culture of cost containment for medical schemes and is pursuing an ideology of “fit for
purpose” in support of this drive.
Through the Integrated Chronic Care Model (“ICCM”), we have introduced the alternative reimbursement model which aims to lower
the costs of healthcare by creating a shared responsibility between AfroCentric and the healthcare providers. The model provides
funding for longer consultations, reviewing of the patient’s care plan, Electronic Health Record (“EHR”) and the ongoing coordination
of the patient’s care.
Since implementing the FICO-powered predictive analytics scoring engine known as IFM, the identification and successful recovery
of fraudulent or abusive claims has increased substantially. Medscheme’s Healthcare Forensic team has demonstrated direct
savings of over R182 million, either through physical recovery of funds or through changing the claiming behaviour of the impacted
service providers who required intervention. The significant downstream reduction in unnecessary healthcare expenditure incurred
by our client schemes, is making a material difference to their ongoing financial sustainability.
Key performance indicators
2017
2016
Weighted scheme solvency (%)
32
36
Average scheme contribution increase (%)
7.08
6.91
Cost savings based on IFM (R’m)
154.1
16.1
UPLIFT OUR PEOPLE
AfroCentric is an organisation driven by its values. The Group’s objective is to instil a positive culture in order to grow, inspire and
motivate our employees. This is to ensure people-centricity and the empowerment of our employees. AfroCentric celebrates
diversity and recognises that our employees belong to different religious affiliations. Therefore, we include the opportunity for our
employees to receive a day of Religious Observance Leave once per year.
We strive to empower our employees through our Learning and Performance Academy (“LPA”). The LPA offers NQF 4 and 5
qualifications on generic management and call centre management. These qualifications are recognised by the South African
Qualifications Authority (“SAQA”).
Our primary aim is to realise our strategic objectives, and we know that the way to achieve success here is to manage our people
effectively. Therefore, we have linked their daily work requirements with opportunities for personal development and professional
advancement. People are managed by defining the work that needs to happen, this is done through Levels of Work and Generic
Jobs. By considering what AfroCentric needs to be the best in the business, we strive to find the point where the individual and the
organisation meet. This is where the individual’s skills and competencies, as valued by AfroCentric, meet the opportunities that the
individual values.
Key performance indicators
2017
2016
Total employees (number)
5 236
4 781
Voice of the employees survey (%)
81.34
82.74
Training spend (R’m)
6.9
7.3
Bursary spend (R’000)
421 136
111 108
LOOKING FORWARD
Our strategy’s success depends on our ability to optimise the value chain, grow the number of lives under our care and successfully
disrupt the industry. We aim to reduce the isolated fragments of the value chain that have increased the costs of healthcare.
Our culture of cost consciousness and cost containment will enhance profitability for us as a group as well as our clients.
AfroCentric is also looking to extract value from the Sanlam partnership, and increase our service offerings to our clients. We are
constantly looking to diversify our revenue sources; opportunities in the rest of Africa provide lucrative prospects for growth in the
medium and long term. The Group remains supportive of the government in its commitment to transform the healthcare sector in
South Africa, and we are prepared to play a pivotal role in servicing the requirements of the NHI.
Group CEO’s report page 47