AfroCentric secures five-year contract for state’s medical scheme
AfroCentric’s subsidiary Medscheme has a contract to provide managed-care services worth R630m a year
Health services group AfroCentric says its subsidiary Medscheme has secured a five-year contract for managed-care services for members of the Government Employees Medical Scheme (GEMS), representing R630m in revenue a year.
Medscheme was the incumbent bidder for the contract, which took effect from the beginning of January and involves managing the cost and quality of health-care, and negotiation of tariffs with hospital and specialist networks.
The new contract includes additional services not previously part of the main contract, AfroCentric said. This includes HIV management, maternity management, and expanded services relating to medicine management.
GEMS is SA’s largest closed scheme — a scheme that is not open to the public — with 750,000 principal members.
Medscheme is SA’s largest health risk management services provider and among the leading medical scheme administrators in the country with more than 3.7-million lives under management.
Clients include major open medical schemes in SA, including Bonitas, Hosmed and Fedhealth.
AfroCentric said in its integrated annual report for its year to end-June 2020 that the value of managed-care savings for medical scheme clients amounted to R3.2bn.
In afternoon trade on Thursday, AfroCentric’s share was up 1.56% to R3.90, giving the group a market capitalisation of R2.24bn.
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