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INTEGRATED REPORT 2017
We have demonstrated resilience in
an ever-changing sector as well as
the ability to continually provide
innovative solutions to improve the
healthcare sector which, in turn,
improves the quality of
members’ lives.
THE YEAR UNDER REVIEW:
RESILIENCE IS KEY TO
ECONOMIC STABILITY
A company’s resilience is more than its capacity to respond
to and recover from challenges. It includes the ability to
predict, prevent and manage a myriad of risks that could
affect different critical sustainability components and
ultimately threaten its economic stability.
Within a highly competitive and ever-changing environment,
AfroCentric has demonstrated resilience and the ability to
continually provide innovative solutions to improve the
healthcare sector which, in turn, improves the quality of
members’ lives.
I credit this milestone to our unique ability to provide new
and cost-effective products to the industry, our dedicated
team of employees and our loyal customers who have made
it all possible.
We have maintained a positive financial growth trajectory
and have diversified our revenue sources. We continue
pursuing opportunities for growth. The amalgamation of
Bonitas and LMS Medical Fund (“Liberty”) added more lives
under our care, prolonging both our track record as a
medical scheme administrator and our number one market
position in managed care.
We successfully promoted more efficient and effective
patient care; and treatment management from the Document
Based Care (“DBC”) back and neck rehabilitation
programme, initiated in 2016, produced positive outcomes.
I am confident that the Integrated Chronic Care Model
(“ICCM”) which was implemented on 1 May 2017 and
includes the capitation and alternative reimbursement
models, will further aid our efforts to enhance cost
containment.
In December 2015, Sanlam Life Insurance Limited (“Sanlam”)
subscribed a 28.7% equity stake in ACT Healthcare Assets
Proprietary Limited (“AHA”). Consequently, Sanlam and
AfroCentric formed a sub-committee in October 2016 to review
how both parties can best leverage this strategic alliance.
Regrettably, our long association with Swazimed ended during
the year. The contract had run since the scheme’s inception 30
years ago, and I am grateful for the relationship we developed
with them. We wish them well in their venture to be a self-
administrating medical scheme. AfroCentric will remain within
the Swaziland market to look for new opportunities.
AfroCentric realises that competing in today’s global economy
is complex. We not only need advanced technical and
vocational skills, but also a flexible workforce that can adjust to
rapid shifts in demand. That is why investing in skills is so vital
to a country’s economic growth and competitiveness.
In 2017, we awarded bursaries to four medical students
studying towards a Bachelor of Medicine and Surgery at two
Tshwane universities. This programme shall be enrolled annually
to support the empowerment of qualifying students.
RESPONDING TO OUR
OPERATING ENVIRONMENT
NATIONAL HEALTH INSURANCE
Universal access
to prevention, treatment, care and support
for illness, and respect for human rights are common purposes
which we share with the Department of Health. To this end,
AfroCentric embraces new opportunities and remains well
positioned to support the government in the implementation of
the National Health Insurance (“NHI”) system and keeping with
world trends by contributing towards universal access to
healthcare in Africa, as per the priorities outlined by the newly
appointed Director-General of the World Health Organization
(“WHO”), Tedros Adhanom. We participated in pilot programmes
and will continue playing a key role in its second phase of
implementation.
The government has progressed towards the next phase in the
implementation of the NHI. We welcome and support the
proposed introduction of an NHI fund during 2017/2018. The
Group is also looking forward to the final NHI White Paper
which the National Treasury, the Department of Health and
other stakeholders are finalising.
The second phase focuses on improving efficiencies, quality,
and controlling costs. This will start to offer improved psychiatric
care, services for the elderly and disabled and, through our
school health programmes, provide maternal health services,
hearing aids and spectacles.
Our retail arm – Pharmacy Direct; medicines wholesaler –
Curasana; and drug importer – Activo Health, have partnered
with the government to deliver enhanced services with greater
efficiency and effectiveness.