News

COMBINING FORCES TO FURTHER IMPROVE HEALTHCARE

The acquisition of BESTmed's administrative operations by Sanlam Healthcare Management was consummated with the approval of the Council for Medical Schemes in February 2008.

BESTmed, which was self-administered up until December 2007, is a medium-sized healthcare funder in South Africa well renowned for their administrative excellence.

BESTmed will now focus on healthcare cover while Sanlam Healthcare Management will be responsible for administration and managed care functions.

BESTmed Principal Officer Dries la Grange says providing members with sustainable and affordable healthcare products in a highly competitive industry calls for imaginative steps - and the partnership with Sanlam Healthcare Management can ensure the recruitment of large numbers of new members.

"Aligning ourselves with Sanlam will make an enormous difference in terms of membership growth. BESTmed will benefit from Sanlam's nationwide network of financial advisors and brokers. Being part of the Sanlam brand will also enhance our prominence and marketability and should lead to strong growth in membership."

La Grange says changes in the medical scheme industry environment make it more difficult to grow and without sufficient and sustainable growth, ageing membership will invariable increase costs.

"Our most important goal therefore, is to grow our membership in an industry where numbers are shrinking.

"BESTmed's Board of Trustees decided that aligning with Sanlam will help overcome this challenge, firmly positioning it as a medical scheme with a long-term future in the South African healthcare environment. It will also give members the long-term security they want from the scheme."

Discussions were held with several organisations, evaluating Sanlam's offer against strong alternatives in a thorough tender process.

The Sanlam offer came out on top. Members of the scheme approved the transaction with a majority vote and BESTmed employees have transferred over with the business to Sanlam Healthcare Management, a healthcare subsidiary of Sanlam, which was established in 2007.

La Grange, who remains with BESTmed as principal officer, says this is the beginning of an exciting era of growth for the scheme.

"We have been in operation for nearly 45 years and as a mutual, non-profit medical scheme, we provide healthcare peace of mind to about 90 000 lives - in many cases second-generation dependants who have opted to become principal members in their own right.

Our partnership with Sanlam will give impetus to our vision to become the healthcare provider of choice to access quality healthcare.

"Our administration cost is still one of the lowest in the industry, whilst independent surveys prove that our members experience very high satisfaction levels in terms of the service rendered."

This track record has gained the Scheme major corporate clients like the University of Pretoria, UNISA, the Vaal University of Technology, the South African Bureau of Standards, the Medical Research Council, Yara South Africa, MEDUNSA, Europ Assistance, La Farge Cement and the Iziko Musuem of Cape Town, to mention a few. The staff of Sanlam will now also have the choice to join BESTmed.

"We will continue to grow our profile of achievement to the benefit of our members by providing them with a product offering that suits their individual needs and their budget.

"In order to make private healthcare more accessible to everyone, one has to take up the challenge and ensure that one remains at the forefront of this process. Our innovative managed healthcare processes are well suited for this environment.

"In today's fast-moving world you cannot give consumers what you may think they need - they know exactly what they want. As a forward-thinking company we take the needs of our members to heart - and provide services accordingly. Our redefined focus and repositioning ensures that we meet our members' healthcare needs - ensuring their peace of mind and personal well-being in the long term. Our alignment with Sanlam will enhance all of this," says La Grange.