Preferred bidders for the 2013 GEMS Managed Care and Chronic Medicine Administration tenders identified
13 August 2012
GEMS
The Board of Trustees of the Government Employees Medical Scheme (GEMS) today announced that a shortlist of preferred bidders has been determined for six of the seven tenders issued on 27 May 2012. The identified bidders will soon be advised of their pref
According to Christa Brink, the Deputy Chairperson of GEMS, the tender for the rendering of Optometry Managed Care Services was re-issued as a number of the original bidders were unable to meet the stringent requirements of the Scheme, resulting in the bid being non-responsive in accordance with the Scheme’s Supply Chain Management (SCM) Policy. The remaining six tenders were for the rendering of HIV/AIDS Disease Management Services, Chronic Medicine Management Services, Chronic Medicine Courier Services, Managed Care Services, Strategic Managed Care Services and Dental Managed Care Services to the Scheme.
“While the Scheme has shortlisted potential providers for each of these services, the awarding of the tenders is only complete after negotiations result in agreements and signing of the various contracts. During the negotiation process, issues such as cost-effective pricing, capacity and stringent service level agreements are considered. Should the Scheme not reach an agreement with any of the shortlisted providers, the Scheme will terminate the negotiation process and start negotiations with the next organisation on the shortlist or re-issue the bid.”
“This is a very important process, as the success of the Scheme is largely attributable to three focus areas which include operational and contractual efficiencies, sound corporate governance and transparent stakeholder relations. Securing the services of appropriate service providers at the best possible price is therefore of key importance to the Scheme and its members,” explains Brink.
The GEMS procurement process is implemented in full compliance with a Board approved Procurement Plan and the Scheme’s Supply Chain Management Policy. The current tender process has been certified as fair by a team of oversight auditors. The independent auditing firms, Deloitte and PWC-Rakoma JV, involved in the administration of the bids ensure that the process remains both fair and transparent. Deloitte is responsible for the entire administration of the bid process, the briefing session and the evaluation of the bids in line with the bid document and SCM policy. A GEMS bid evaluation committee is also responsible for a second evaluation of the tenders and their respective reports are then tabled to the Board of Trustees, which is tasked with making the final decision. This entire bid evaluation and adjudication process by Deloitte and the Scheme officers is monitored and overseen by PWC – Rakoma JV auditing firm.
According to Brink, the strict tender processes followed by GEMS complements the now firmly established operational infrastructure and culture of excellence that has positioned GEMS as a leader in healthcare funding and Corporate Governance. “Corporate Governance and ethics are cornerstones of the GEMS culture. Because of our stringent tender processes, such as declarations of interest, vetting for all those involved in the bid process as well as investigation of any allegation of impropriety by the Scheme’s fraud unit, the Scheme has been able to keep its procurement processes above reproach.”
The value of these contracts and the high profile of the Scheme within the medical scheme environment clearly suggest that the procurement process will always be subjected to intense scrutiny. It is also these factors that lead to fierce competition in the market for Scheme contracts.
Through these regular, competitive and vigorous procurement processes, the Scheme has been able to keep its non-healthcare expenditure well below the industry range whilst maintaining stringent service levels. The Scheme’s low non-healthcare expenditure, which at 6.1% by the end of 2011 is the lowest annual figure recorded since the inception of the Scheme and is half the industry average of around 12%, serves as an indication that costs are firmly in check despite the unprecedented growth of the Scheme.
Seven years following its inception, GEMS has grown steadily and developed into the second biggest medical scheme in the sector, covering 55% of all eligible members, which equates to over 650 000 public service employees. Of these members more than 54% did not previously have access to medical scheme benefits. GEMS is now responsible for the healthcare needs of over 1.7 million beneficiaries.
“GEMS savings and cost containment benefits are always passed back to members and evidence of this is demonstrated in the pricing structure of the Scheme. The benefits of the Scheme’s efficient procurement and contracting arrangements are of considerable importance in ensuring added value for GEMS members and the long term sustainability of the Scheme,” concludes Brink.