Fedhealth well positioned for growth
Addressing members yesterday at the 77th AGM of Fedhealth, Fedhealth Chairman Phil Hemus said that against a challenging background for all medical schemes, Fedhealth had continued to make progress in substantially increasing benefits and containing contr
He said the scheme had had to deal with a number of regulatory issues during 2012 and also noted that The Protection of Personal Information Bill, the King 111 requirements, the Consumer Protection Act and, more recently, the Competition Act, have far reaching implications for the future management of medical schemes. Fedhealth recorded a net surplus of R151 million for 2012, increasing from R143 million in 2011. The Scheme has also increased its solvency ratio to a healthy 40%, well above the legislated 25% requirement.
Hemus said this had allowed the scheme to increase benefits for members.
Hemus noted that there had been a marginal increase in membership and that the scheme had managed to maintain its AA- credit Rating. On the membership front Hemus confirmed that the scheme was continuing to replace its Persal membership with good quality private sector membership. He said that hospital costs remained the largest cost driver for the scheme accounting for 44% of the total benefits paid on behalf of members. He said the scheme would be applying its mind to find ways in which these costs could be better managed and contained to ensure the long term sustainability of the scheme.
On the technological front, Fedhealth recently launched an App for users enhancing their service experience.
Commenting on future sustainability, Hemus says the scheme would be looking to improve health outcomes for every Rand. The success of initiatives like the GP and Pharmacy networks over the last two years have helped with this and Fedhealth now boast one of the most comprehensive specialist provider networks in South Africa. "Relationships between Fedhealth and healthcare professionals will remain key in 2013 to help consistently drive efficiencies and improve health outcomes," concludes Hemus.
