Creating value through purpose
OUR PURPOSE IS TO ENHANCE THE QUALITY OF LIFE OF OUR STAKEHOLDERS. VALUE FOR AFROCENTRIC IS THEREFORE TIED TO OUR ABILITY TO ACHIEVE THIS AIM. WE SEEK TO FULFILL THIS PURPOSE BY TRANSFORMING HEALTHCARE – MAKING IT MORE AFFORDABLE AND WIDELY ACCESSIBLE.
For our business to succeed, we must determine the matters that are most material to us. We do this by evaluating our external operating context, our stakeholder relationships and the risks and opportunities arising from these.
Read about the material matters central to our business.
DELIVERING VALUE BY TRANSFORMING HEALTHCARE
The Group has invested significant financial and intellectual capital into analysing the full healthcare spend. This exploration of the challenges and risk environment informed our approach to developing or acquiring the necessary assets and capabilities to deliver the right solutions to achieve our mission.
These efforts align with a primary United Nations SDG for the healthcare sector and is a foremost target for the Group – Good Health and Wellbeing. Our ambitions specifically address the following target within SDG 3:
Target 3.8 of SDG 3
Achieve universal health coverage, including financial risk protection, access to quality essential healthcare services and safe, effective, quality and affordable essential medicines and vaccines for all.
We seek to contribute positively across all 17 SDGs (and reference several SDGs within our report). However, we recognise that in light of our purpose and mission, focusing on enhancing health and wellbeing and, more specifically, targeting broader access to healthcare aligns with our definition of value and will be our most significant contribution to sustainable development.
Our objectives also align with the National Development Plan (NDP) – Vision 2030 in its desire to develop a health system that works for everyone and produces positive health outcomes.
Health goal 8 of the NDP: Universal healthcare coverage
Everyone must have access to an equal standard of care, regardless of their income.
OUR CONTRIBUTION TO THESE CRITICAL GOALS
| Investing in primary and preventative healthcare to advance access to care |
| Primary health insurance, a cornerstone of SDG 3, promotes good health and wellbeing by providing affordable and accessible essential healthcare services. By leveraging the synergy with medical schemes, we offer a range of wellbeing offerings and cost-effective solutions, improving early detection and quality of life for members. |
| Optimising the healthcare value chain to enhance efficiencies and reduce healthcare costs |
| Advancing value-based care |
| Digitising to reduce costs and improve client experience |
Medscheme has developed various data-driven disease management solutions that are integrated, holistic and member-centric. Automation and process improvements have enhanced operational excellence to the benefit of schemes and their members. |
| Positioning for success in a National Health Insurance (NHI) environment |
| Over the years, AfroCentric has been pursuing the diversification of our involvement in the health sector. This places the Group in a strategic position to work with government on the NHI processes as implementation progresses. Our collaboration with the NDoH in the Central Chronic Medicine Dispensing and Distribution (CCMDD) programme highlights our ability to support the government’s healthcare goals. 15 268 885 scripts were dispensed during the period as part of the CCMDD programme (2023: 13 045 738). |
DELIVERING VALUE TO SOCIETY BY FULFILLING OUR PURPOSE
Our success is intrinsically linked to the value we provide to our stakeholders. We recognise our societal role and envision how AfroCentric's presence can positively transform healthcare for the benefit of society. A clear sense of purpose informs our strategic direction and decision-making, enabling us to balance creating long-term value and achieving short-term goals.
CUSTOMER EFFORT SCORE
73.64%
(2023: 61.39%)
WEIGHTED SCHEME SOLVENCY OF
49.2%
(2023: 52.2%)
AVERAGE SCHEME CONTRIBUTION INCREASE OF
8.29%
(2023: 6.9%)
R425.8 million
COST SAVING BASED ON CHANGE IN BILLING BEHAVIOUR
(2023: R541.7 million)
R296.6 million
FRAUD, WASTE AND ABUSE (FWA)
(2023: R342.2 million)
R151 million
FWA CASES RECOVERED
(2023: R150 million)
Value created for us
Retaining and growing our medical scheme clients is critical to our sustainability and enhances the organisation's profitability.
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Value created/capital enhanced | |
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Value eroded/capital reduced | |
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Value preservation |
ENABLED VIRTUALCARE CONSULTATIONS
ENABLED WHATSAPP MEMBER ENGAGEMENTS
FACILITATED THE USE OF THE HOSPITAL-AT-HOME PRODUCT BY PATIENTS
DRIVING A VALUE-BASED CARE MODEL TO ENSURE THE BEST OUTCOMES AT THE BEST COST FOR MEMBERS
Value created for us
Member satisfaction is critical to our clients and therefore top of mind. By ensuring member satisfaction for our clients, we support the continued sustainability of our business.
DIVIDEND YIELD OF
3.8%
(2023: Nil)
HEADLINE EARNINGS PER SHARE OF
40.32 cents
(Restated 2023: 36.34 cents)
OPERATING PROFIT INCREASED BY
0.8%
(2023: 23.6% decrease)
NET WORKING CAPITAL
12.6%
DECREASE YEAR-ON-YEAR
(2023: 9.8% increase)
0.4%
GROWTH IN REVENUE
(2023: 2.0%)
RETURN ON INVESTED CAPITAL OF
4.3%
(2023: 8.1%)
RETURN ON EQUITY OF
1.9%
(Restated 2023: 8.7%)
DIVERSIFYING INTO OTHER REVENUE STREAMS THROUGH OUR VARIOUS SUBSIDIARIES SUPPORTS BUSINESS SUSTAINABILITY
PHARMACEUTICAL COMPANIES
47.8%
REVENUE CONTRIBUTION
(2023: 50.3%)
24%
CONTRIBUTION TO OPERATING PROFIT
(2023: 22%)
Value created for us
Our providers of capital enable us to diversify our revenue sources and grow our business.
14.8%
EMPLOYEE TURNOVER
(2023: 13.4%)
85.6%
OF THE WORKFORCE ARE BLACK
(2023: 90.2%)
69.2%
OF THE WORKFORCE ARE WOMEN
(2023: 71%)
61.6%
OF THE WORKFORCE ARE BLACK WOMEN
(2023: 59%)
53.3%
BLACK REPRESENTATION AT SENIOR MANAGEMENT LEVEL
(2023: 45%)
3 927
EMPLOYEES UNDERTOOK 642 ONLINE COURSES
(2023: 844 courses taken by 3 802 employees)
R5.2 million
WAS SPENT ON DEVELOPING OUR EMPLOYEES
(2023: R5.8 million)
Value created for us
Our people are a key differentiator and enable our continued success. AfroCentric competes for skilled and experienced global and local healthcare employees. Retention of critical skills, particularly actuarial, information technology (IT) and medical specialists, is imperative to our continued success.
THROUGH THE PARTNERSHIP WITH THE NDoH ON THE CCMDD PROGRAMME, AFROCENTRIC DISPENSED
15.3 million
SCRIPTS
(2023: 13 million scripts)
AFROCENTRIC CONTRIBUTED APPROXIMATELY
R862 million IN TOTAL TAX BORNE
(2023: R1 008 million) (refer to Tax transparency for detailed breakdown)
Value created for us
Policy and regulatory decisions directly impact the Group and our subsidiary entities. By engaging with government and regulators, we contribute to shaping an environment that supports our mission of innovating a new integrated model of sustainable healthcare that measurably improves access to care. Furthermore, we can develop sustainable revenue streams by seeking to support national and provincial spheres of government by delivering services that meet their mandate.
AFROCENTRIC PARTICIPATES IN VARIOUS ENGAGEMENTS WITH INDUSTRY BODIES
Value created for us
Industry bodies provide vital opportunities to interact with broader industry players concerning critical interests in the healthcare sector. In some instances, they open communication channels to government and regulators, particularly when policymakers and regulators seek industry-wide positions.
