Frontrunners named for new state medical scheme

The South African government has announced its preferred bidders for seven of the eight contracts to administer its Government Employees Medical Scheme, which is expected to shake up the South African health-care industry next year.

Government said it would initially target its 380,000 employees not covered by medical aid schemes, and that at this stage enrolment would be voluntary.

However, Public Service and Administration Minister Geraldine Fraser-Moleketi said government was “not averse” to the idea of the scheme becoming mandatory for all public service employees in the “longer term”.

The medical aid scheme aims to increase the state’s control over the medical benefits it provides to public servants, save money and help relieve the burden on public hospitals and clinics.

Health-care groups Metropolitan Health Group and Medscheme are set to walk away with the lion’s share of the contracts, with each being named preferred bidders for two contracts each.

Metropolitan Health Group is the preferred bidder for the administration contract, while Qualsa, a wholly-owned subsidiary of Metropolitan Health Group, is the preferred bidder for the medicine clearing-house deal.

Medscheme’s divisions Solutio and Aid for Aids were named as preferred bidders for managed care and HIV disease management.

Prime Cure Health was named preferred bidder for the contract for designated service providers for two options under the scheme called “topaz” and “sapphire”.

First National Bank was named as the preferred bidder for the banking services contract.

Auditing firm Sizwe Ntsaluba and Netcare 911 were named as the preferred bidders for the external audit and ambulance contracts respectively.

Source: Nick Wilson Frontrunners named for new state medical scheme Business Day, 25 October 2005

For text: http://www.businessday.co.za/articles/topstories.aspx?ID=BD4A105297

FMF Policy Bulletin/ 25 October 2005