Medical schemes Bonitas and Liberty in discussions to merge
by Wire Staff,
2016-03-16 20:11:06.0
TWO of the country’s biggest medical schemes‚ Bonitas Medical Fund and Liberty Medical Scheme (LMS)‚ have confirmed they are in discussions to amalgamate.
If successful‚ the merger will further entrench Bonitas’s role as a leader in the healthcare market‚ the scheme said on Wednesday.
The companies said that with combined experience spanning over 50 years‚ the new amalgamated scheme would have an intricate understanding of the needs of the consumer in the complex healthcare market, together with underlying financial resources to offer more cost effective options to its members without compromising member well-being.
"While negotiations are at an advanced stage‚ member consultation is imperative and various regulatory processes still need to be satisfied for the transaction to be concluded‚" said Andrew Edwards‚ executive principal officer for LMS.
Bobby Ramasia‚ principal executive officer for Bonitas, agreed. "We will liaise with the Council for Medical Schemes (CMS) to ensure that due process is followed and all necessary regulatory approvals are obtained."
The LMS and Bonitas Boards of Trustees commissioned preliminary investigations into a possible amalgamation between the two schemes. The positive outcomes of the initial feasibility studies provided sufficient motivation for both Boards to explore an amalgamation process.
According to the two companies‚ consolidation among medical schemes is an increasing trend, which is indicative of the current healthcare industry.
"Bonitas is committed to acting in the best interests of our members at all times. This amalgamation will reinforce our size and enhance our ability to negotiate improved benefits and services with healthcare providers to ensure our members have access to affordable‚ quality healthcare‚" said Dr Ramasia.
"We are delighted with the opportunity and wealth of benefits it opens up to our members and financial advisers‚" said Mr Edwards.
Dr Ramasia and Mr Edwards said the benefits of the potential amalgamation were numerous.
Bonitas‚ currently administered by Medscheme‚ is SA’s second-largest open medical scheme. The scheme’s financial indicators are above the legislated requirements and industry average. Bonitas has one of the highest credit ratings in the industry‚ which is synonymous with a high claims-paying ability‚ in turn ensuring members access to high-quality healthcare.
The new scheme would have a broader national footprint, better economies of scale to negotiate better rates and would improve provider networks. Bonitas’s strong financial stability and generally predictable claims history should also translate to more value for members of the new scheme.
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Picture: THINKSTOCK
TWO of the country’s biggest medical schemes‚ Bonitas Medical Fund and Liberty Medical Scheme (LMS)‚ have confirmed they are in discussions to amalgamate.
If successful‚ the merger will further entrench Bonitas’s role as a leader in the healthcare market‚ the scheme said on Wednesday.
The companies said that with combined experience spanning over 50 years‚ the new amalgamated scheme would have an intricate understanding of the needs of the consumer in the complex healthcare market, together with underlying financial resources to offer more cost effective options to its members without compromising member well-being.
"While negotiations are at an advanced stage‚ member consultation is imperative and various regulatory processes still need to be satisfied for the transaction to be concluded‚" said Andrew Edwards‚ executive principal officer for LMS.
Bobby Ramasia‚ principal executive officer for Bonitas, agreed. "We will liaise with the Council for Medical Schemes (CMS) to ensure that due process is followed and all necessary regulatory approvals are obtained."
The LMS and Bonitas Boards of Trustees commissioned preliminary investigations into a possible amalgamation between the two schemes. The positive outcomes of the initial feasibility studies provided sufficient motivation for both Boards to explore an amalgamation process.
According to the two companies‚ consolidation among medical schemes is an increasing trend, which is indicative of the current healthcare industry.
"Bonitas is committed to acting in the best interests of our members at all times. This amalgamation will reinforce our size and enhance our ability to negotiate improved benefits and services with healthcare providers to ensure our members have access to affordable‚ quality healthcare‚" said Dr Ramasia.
"We are delighted with the opportunity and wealth of benefits it opens up to our members and financial advisers‚" said Mr Edwards.
Dr Ramasia and Mr Edwards said the benefits of the potential amalgamation were numerous.
Bonitas‚ currently administered by Medscheme‚ is SA’s second-largest open medical scheme. The scheme’s financial indicators are above the legislated requirements and industry average. Bonitas has one of the highest credit ratings in the industry‚ which is synonymous with a high claims-paying ability‚ in turn ensuring members access to high-quality healthcare.
The new scheme would have a broader national footprint, better economies of scale to negotiate better rates and would improve provider networks. Bonitas’s strong financial stability and generally predictable claims history should also translate to more value for members of the new scheme.
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