Resolution Health and Nimas announce amalgamation

Resolution Health Medical Scheme (Resolution Health) and the National Independent Medical Aid Society (NIMAS) today announced the successful completion of the amalgamation that will see the two schemes merging their businesses on 1 August 2012. Approxima

“The amalgamation has witnessed Resolution Health’s entry into the top 10 largest open medical schemes in South Africa and has significantly increased our market share, financial position and long-term sustainability,” says Mark Arnold, principal officer for Resolution Health.
According to Arnold, consolidation in the medical scheme industry became a natural consequence of various developments in the medical scheme industry. Some schemes’ risk profiles have become too small to absorb ever-increasing medical costs. Further driving the trend is the pooling of funds required across a larger membership base and lack of substantial growth of the private healthcare industry due to changing Government health policies leaving especially employer groups uncertain on subsidy policies and funding more workers into the private sector.

“Resolution Health is ideally positioned to assist employers and members with overcoming these burdens. The scheme’s low underlying risk, exceptional value for money, critical membership pool and wide range of benefit options, which has increased to eight options post-amalgamation, ensure that all members and employers feel comfortable within the Resolution Health stable,” says Arnold.

Confirmation of the amalgamation follows approval by the Council for Medical Schemes (CMS). The membership of both schemes voted in favour of the amalgamation and the voting process was overseen by independent auditors, Deloitte, and has been declared transparent and objective.

“Resolution Health has experienced a solid 20.8% growth in its membership base during 2011 within a market which has shown little growth in recent years. This has reaffirmed Resolution Health as a leader within the healthcare market with tailor-made medical cover options, affordable contributions and the development of a progressive managed care model,” said Arnold. “The amalgamation falls in line with Resolution Health’s strategy to support the inorganic growth of the scheme to the benefit of our members,” he added.

“The financial security and growth of Resolution Health, combined with the scheme’s benefit structures and complementary loyalty and stakeholder services and products, played a key role in the decision to move forward with the proposed amalgamation,” said Sam McGuigan, principal officer of NIMAS. “Resolution Health offers broader benefit options and the Zurreal range of services and products will greatly benefit NIMAS members, employers, medical service providers and brokers,” he added.

“Following the successful completion of the amalgamation, Resolution Health will experience an immediate increase in solvency, benefiting both existing and new Resolution Health and NIMAS members. The positive outcome will enhance the amalgamated Resolution Health’s sustainability in the long-term and increase its negotiating power with service providers, as well as Zurreal wellness and lifestyle partners to the benefit of members.

“The amalgamation enables NIMAS to honour its commitment of providing sustainable healthcare to all its members,” said McGuigan. “We look forward to welcoming the NIMAS members into the Resolution Health fold,” concluded Arnold.