Our strategy and approach

Our strategy informs our business model for sustained value creation

AfroCentric is the most diversified healthcare company in Southern Africa. By completing the integration of new acquisitions into our business and leveraging the power of technology to transform client service, we are evolving our business model and moving closer to achieving our ultimate goal of transforming healthcare.

Our long-term objective

The healthcare value chain comprises primary care, medicine, specialist care and hospitalisation solutions. AfroCentric is broadening access to healthcare by expanding our presence, integrating operations and optimising costs across the value chain to measurably improve access to quality healthcare.

This requires that we

Our strategic pillars
(medium-term objectives)

GROW

and strengthen our businesses

DIVERSIFY

our business composition with new products and services

ACHIEVE

greater operating excellence

OUR PEOPLE

Our people are a critical differentiator. We are devoted to helping them self-develop. A top priority is fostering a high-performance culture to help us achieve our strategic goals.

Overview of our performance	Key performance indicators	2023 target	2022 target	2022 actual	Link to executive remuneration
Embarked on a digital transformation journey for our people Developed, implemented and used Service Design and LEAN Six Sigma methodologies Embarked on the identification of the talent pipeline for senior leadership and key roles (ongoing) Drove culture transformation at all levels across the business – all leaders are being held accountable for pioneering culture transformation Rolled out a formal curriculum for team leaders and operational managers	B-BBEE Level	Level 1	Level 1	Level 2 (2021: Level 1)	(Scorecard component: Transformation)
	Engagement	85%	85%	83% positive sentiment

CLIENT EXPERIENCE AND MEMBERSHIP GROWTH

We create access to sustainable, affordable, quality healthcare through innovative expertise. We deliver this through an efficient, seamless experience.

Overview of our performance	Key performance indicators	2023 target	2022 target	2022 actual	Link to executive remuneration
Continued macroeconomic stressors placed pressure on membership growth Awarded the full managed healthcare tender for SAMWUMED, effective 1 January 2022	Number of lives administered	3.8 million	3.8 million	3.8 million (2021: 3.8 million)	(Scorecard component: Strategic)

TECHNOLOGY

We provide cutting-edge technological platforms and transactional systems that are among the best in the world with services such as hosting, switching, administration, health risk management, and clinical applications.

Overview of our performance	Key performance indicators	2023 target	2022 target	2022 actual	Link to executive remuneration
Continued progress in enhancing the data-driven nature of the business through easy access, sharing and availability of data Continued with system renewals and upgrades to explore better and more efficient ways of servicing and engaging our customers/members Enhanced automation and process improvements have furthered operational excellence to the benefit of schemes and their members Developed and implemented mobile application digital initiatives for the schemes, resulting in the reduction of member calls to the call centres	IT system stability	Reduced number of incidents, associated with an improved cost per member value	Reduced number of incidents, associated with an improved cost per member value	A decrease in incidents from 2021 to 2022	(Scorecard component: Strategic)

EXPLORING DISRUPTIVE MODELS

Our integrated approach promotes tight collaboration between the Group, schemes and providers, as well as improved access to care for long-term sustainability.

Overview of our performance	Key performance indicators	2023 target	2022 target	2022 actual	Link to executive remuneration
Concluded negotiations with Sanlam Health Solutions to acquire a Gap Cover business that is supplementary to current medical scheme offerings Designed and implemented the Sanlam Corporate Wellness offering for the Sanlam Group staff Enhanced our innovation capability through the identification of a core group of individuals to drive the design of innovative solutions	Success criteria to be defined in terms of membership growth, types of products and long-term impact during the new financial year.				(Scorecard component: Strategic – forward-looking)

OPTIMAL STRUCTURE

A taxonomy geared towards the business strategy, business goals, and execution, all of which enables us to deliver consistent business outcomes.

Overview of our performance	Key performance indicators	2023 target	2022 target	2022 actual	Link to executive remuneration
Enhanced real-time availability monitoring Continued to leverage the use of a single service measure as an operational tool to drive functional output at the highest levels	Reduction in permanent staff per 1 000 lives while improving service level	3 – 5%	3 – 5%	5.49% (2021: 4%)	(Scorecard component: Strategic)

SERVICE MODEL

We leverage big data and best-practice analytics to achieve superior operating excellence linked with modern, simple service tools.

Overview of our performance	Key performance indicators	2023 target	2022 target	2022 actual	Link to executive remuneration
Enhanced automation rate has increased straight-through processing, with a 20% increase in self-service channels Continued enhancement of processes, call centre management and customer/member contact via digital platforms	% reduction in calls per 1 000 lives	10% reduction	10% reduction	5.49% reduction (2021: 4%)	(Scorecard component: Strategic)

PHARMA CLUSTER

Our value-chain capabilities offer world-class distribution services for medicine and pharmaceutical products.

Overview of our performance	Key performance indicators	2023 target	2022 target	2022 actual	Link to executive remuneration
Experienced negative trend in adherence to chronic medicines, which impacted subsidiaries and script growth Continued investment in efficiencies through partial automation within our Pharmacy Direct facility, supporting overall performance Experienced changing demand for preventative products, such as vitamins, which returned to pre-COVID levels Launched the Pharmacy Direct Online Store Established an Independent Retail Pharmacy Network to create an organised, well-coordinated and managed pharmacy network	% increase in scripts under management	10%	10%	4.5% (2021: 32.3%)

PRIMARY CARE, PRIMARY HEALTH INSURANCE AND OCCUPATIONAL HEALTH

We enable expanded access to care by leveraging the latest technology and data approaches while driving a superior service experience for all our stakeholders.

Overview of our performance	Key performance indicators	2023 target	2022 target	2022 actual	Link to executive remuneration
Reduced claims costs for our schemes through managed care programmes Developed and rolled out a wide range of healthcare and corporate wellness offerings tailor-made and white labelled for Sanlam clients Vaccinated approximately 200 000 citizens, comprising medical scheme members, the uninsured public and our staff at our various centres around the country Provided access to the VirtualCare platform for primary care healthcare providers for seamless integration with AfroCentric Leveraged Medscheme's digital capability to scale its integrated mental health solution by partnering with a mental health app that improves access to self-care solutions, group sessions and virtual care	Managed care savings	R4.5 billion	R4 billion	R4.2 billion (2021: R2.7 billion)