Bonitas upbeat about future prospects following merger with Pro Sano
The regulatory requirements pertaining to Bonitas Medical Fund’s merger with Pro Sano Medical Scheme have been concluded. The official effective date of the amalgamation will be 1 January 2013. The merger follows an extensive process embarked upon by the
Bobby Ramasia, the Executive Principal Officer of Bonitas Medical Fund, says: “We are very excited about the conclusion of this merger and we welcome Pro Sano members into our fold. This merger is not only about Bonitas but about our strategic intent to continue to provide superior healthcare funding options for our members. The future can only be brighter from here onwards.”
The merger is seen as a positive move given the similar demographics and synergies to be achieved. Both schemes are well-aligned within similar markets, with Bonitas enjoying a far bigger representation mainly due to its distribution strategy and brand recognition. With Pro Sano subsumed into Bonitas, all the rights, obligations, assets, and liabilities of Pro Sano now vest in Bonitas. All members of the amalgamated scheme will be administered by Medscheme Holdings (Pty) Ltd in accordance with the administration agreement in place between Bonitas and Medscheme.
Dr Monwabisi Gantsho, Registrar of Medical Schemes and Chief Executive of the Council for Medical Schemes says: “It is only fitting that schemes adapt to the changing needs of the market. The consolidation of schemes is a trend that is expected to continue. It makes medical schemes more viable, efficient, and effective.”
The medical schemes environment is facing challenging times, not only with the introduction of the National Health Insurance (NHI) system but also with the escalating medical costs and a limited market in which to grow. Furthermore, the sustainability of existing membership continues to be hampered by reduced consumer discretionary income. Given these and other challenges, now more than ever, medical schemes’ executives are faced with the mammoth task of managing the delicate balance of keeping the schemes efficiently operational and relevant to members. It is these market conditions that motivated Pro Sano Medical Scheme to consider an amalgamation with Bonitas, a move that further strengthens Bonitas’ hold on the market, cementing the latter as the second-largest scheme in the open schemes environment.
Aglaak Mahmood, Principal Officer of Pro Sano, says: “It is a complex challenge faced by medical schemes today, especially in view of the fact that we cannot compromise on the healthcare we provide our members nor can we lose sight of our purpose. This merger and the ensuing consolidation of the industry is the best defence against the strain on sustainability. We need to be able to create schemes that are based on a concrete rather than nebulous vision to ensure South Africans can be supported in their quest for sustainable and much-needed healthcare funding.”
The conclusion of the merger followed a protracted and a diligent process by both parties that started over a year ago. After much deliberation, both felt that merging their operations will be of great benefit to their respective members as they share a common vision.
“A marketing and distribution strategy which will draw on the strengths of both schemes will be developed to ensure member growth and retention going forward. Bonitas is committed to ensuring a win-win for everyone involved,” concludes Ramasia.
