Resolution remains committed to dialogue with Council

Despite recent attempts by the Administrator for Resolution Health Medical Scheme (RHMS) to obtain extended accreditation (temporary accreditation was granted in October 2008) by the Council for Medical Schemes (CMS), the North Gauteng Division of the High Court, yesterday, declined the Administrator’s application.

The court action referred in the CMS press release (issued 1 September 2009), was an interim application, pending the appeal by the CMS Appeals Tribunal.

However, Resolution Health (Pty) Ltd and Resolution Administrators (Pty) Ltd acknowledge the ruling and have already lodged an appeal.

Jannie Kotze, CEO of Resolution Health (Pty) Ltd confirmed that Resolution sought interim relief in the Gauteng North High Court in May 2009 to ensure the company’s continued day to day operations while an amicable outcome is sought with the CMS. “We took this step reluctantly because we believe that open and frank discussion with the CMS would resolve any issues it has with regards to our accreditation. However we also have a duty to our customers and other stakeholders to ensure that we continue providing them with the industry-leading products and service.”

He added that it must be kept in mind that the Administrators and the Scheme are separate units and therefore this ruling has no direct relation to the Scheme.

Kotze stressed that the scheme, which is one of the top 10 in the country, has good solvency. “The dispute the administrator has with the CMS does not have any effect on the Scheme. The Administrator has been doing the business of administrating Resolution Health Medical Scheme for 10 years, and we are not doing anything differently. Our primary responsibility is and will remain, to put the interests of all our members first, and we are therefore committed to ongoing processes with the CMS and other interested parties as required.”

Kotze said: “We can assure our valued members, suppliers and brokers that these processes will in no way affect the day-to-day running of the organisation and that it remains business as usual.”

In addition, Kotze said that the Administrator’s ongoing discussions with the CMS aim to deal effectively with any concerns the latter may have on the technical and other factual disputesof administration. These technicalities around Resolution Health’s accreditation with the CMS do not affect the Scheme, its benefits or the payments of any claims, or the daily operational aspects of RHMS, he said.

Kotze has assured fund members that they will continue to be covered irrespective of the outcome of the accreditation issue which is due to technical and intricate variables