AfroCentric Group Integrated Annual Report 2017

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INTEGRATED REPORT 2017
AFROCENTRIC
STRATEGIC OBJECTIVES KLINIKKA’S ALIGNMENT TO THESE
Enhance
shareholder value
The new contracting model introduced in 2017 increases the profitability of Klinikka,
thus enhancing shareholder value for the Group.
Maximise growth
opportunities
By partnering with Workability, Klinikka is able to grow its network and contracting
potential faster, resulting in more lives under the Group’s care.
Improve efficiencies
through cost
consciousness
The CIS is used throughout the treatment process to document, design, analyse and
report. The CIS manages information and facilitates individual or group reporting
between customers, organisations and treatments.
The Bonitas Capped Fee Agreement also helped reduce the cost of treatment
per member.
Promote transformation All new DBC centres will preferably be black-owned and operated in historically
disadvantaged areas.
Diversify
revenue sources
The new contracting model enables us to generate income from managed
care contracts.
Deliver exceptional
client service
The annual Clinical Outcomes report for 2016 confirmed that we achieved more
improved levels of client satisfaction in South Africa than the global average for the
DBC network (as measured by the CIS system).
Reduce the cost
of healthcare
The DBC programme has proven to reduce the cost of musculo-skeletal care with
a sustained return on investment (“ROI”) of 128% to 480% for every Rand spent on the
DBC programme for medical schemes.
Uplift our people We are partnering with operators to bring the DBC programme to areas that were
historically underserviced, and our ownership will reflect AHL’s transformation targets.
OPPORTUNITIES AND CHALLENGES
The implementation of the NHI will accelerate Klinikka’s growth.
Klinikka will ensure that the healthcare network implements and
maintains clinical standards in the DBC centre network, which
is owned by independent interdisciplinary medical teams who
work together in providing evidence-based care to patients.
This will assist large medical schemes and insurers that require
national service providers to provide specialist treatments.
Klinikka aims to ensure that clinical standards and systems are
reviewed to ensure that we maintain the required standard in
all centres.
OUTLOOK
Clinical performance will be a priority for our long-term
profitability. Klinikka is confident that the growing centre network
will maintain its clinical standards and that training with our
Finnish document-based care solutions (“DBCS”) partners will
be productive.
We will implement the Bonitas Capped Fee Agreement, entered
into on 1 April 2017 and are focused on its inherent operational
challenges. We are working to establish a contract with
Workability centres in Bloemfontein and Port Elizabeth and
to develop a reporting system and operational support.
We are working with Medscheme Namibia to open our first
Namibian DBC centre which will be operated under a unique
business model to ensure the best possible care at a sustainable
price in this new market. The strategy is to follow Medscheme
into southern Africa.
We are actively engaging with DBCS partners in Finland to
reduce the cost of the DBC programme. We have indicated
that we are willing to assist in the support and manufacturing
for global distribution from South Africa. This would increase
Klinikka’s revenue and reduce the cost of the parts and devices
globally for our DBCS partners.
Read about Klinikka on AfroCentric’s website,