Medinol Practice Management | Medical Billing Software South Africa
We Empower Healthcare Professionals Through IT
2021 01 06

Bonitas / Liberty Medical Scheme Amalgamation from 1 October 2016

admin Dental Practices, Medical Aid, Medical Practices, Practice Management

Bonitas/LMS amalgamation gets go-ahead

 

In the largest transaction of its kind in SA healthcare, the amalgamation of Bonitas withLMS has been approved, reports Fin24.

The amalgamation between Bonitas Medical Fund (Bonitas) and LMS Medical Scheme(previously known as Liberty Medical Scheme) has received the stamp of approval by theCompetition Commission and the Council of Medical Schemes (CMS) effective 1 October 2016.

According to a statement issued on behalf of Bonitas, it is the largest transaction of its kind in the SA healthcare industry.

Bonitas, administered by Medscheme, is South Africa’s second largest open medical aid with financial indicators above the legislated requirements and industry average. An open medical aid means there are no restrictions on membership based on employment or profession and it is, therefore, open to the general public.

In August, when the Competition Tribunal approved the amalgamation, it was done without conditions, Lerato Motaung, Competition Tribunal registrar said at the time. Motaung said the Commission had found some overlap of the merging parties’ activities in relation to the administration and managed care services, but the services are carried out contractually by third parties, not by the merging parties themselves. The Commission felt the merging parties would continue to face competition from other medical aid schemes.

The report say Dr Bobby Ramasia, principal executive officer of Bonitas has now confirmed receipt of the official notification by the CMS. “Initially our aim was to begin trading as one entity as from August, however, considering the impact of the amalgamation – not only on members but the industry as a whole – it was imperative that all the regulatory processes were followed. This marginally delayed the approval, as everything had to be carefully considered and weighed up by the Competition Commission and CMS,” said Ramasia.

“However, we are pleased it has now been ratified and is in the process of finalisation of all the legalities in order to begin trading. Official notification to members will be sent out shortly outlining the way forward but we’d like to reassure them that this amalgamation is in their best interests.”

The report says the amalgamation was explored after the positive outcome of an initial feasibility study. According to Bonitas, the amalgamated scheme will have a broader national footprint, better economies of scale to negotiate better rates and improve provider networks. The amalgamated scheme will be stronger and more sustainable, providing enhanced cover and benefits, consolidation of resources and fixed costs. This will assist with relieving pressure on future contribution increases.

“With our combined years of experience we have an intricate understanding of the needs of the consumer in the complex healthcare market,” explained Ramasia. “Our increased size in terms of members and national footprint will enhance our ability to negotiate better benefits and services with healthcare providers.”

Ramasia reassured members that throughout the amalgamation process, both schemes were committed to acting in the best interest of members at all times and this is set to continue. Liberty Health reported a loss of R11m for the six months to the end of June compared to R22m from the prior period. It was in talks with Spectramed on more than one occasion for a potential takeover.

Bonitas and Liberty said earlier this year that if the merger is successful, it will continue under Bonitas’ name, the report said.

Fin24 report

NETCARE & PG GROUP Update Edcon Medical Scheme Update

Related Posts

Latest News, Medical Practices

New pill with ingestible microchip monitors you from the inside

Dental Practices, Latest News

Kodak files for bankruptcy

Blog, Dental Practices, Featured, Medical Practices, Technical

Top 5 Bank-Breaking Surgery IT Melt-Downs

Search for

2021 Dental Tariffs

Twitter feed @medinol

Medinol SoftwareFollow

Medinol Software
MedinolHqMedinol Software@MedinolHq·
31 Mar

http://medinol.co.za/coding-for-covid-19-patients/

Reply on Twitter 1244953229986795521Retweet on Twitter 1244953229986795521Like on Twitter 1244953229986795521Twitter 1244953229986795521
MedinolHqMedinol Software@MedinolHq·
21 Nov 2019

What is Wrong with EMR? James J. Cimino, M.D., Columbia University Jonathan M. Teich, M.D., Ph.D., Partners Healthcare System Vimla L. Patel, Ph.D., DSc. - ppt download https://slideplayer.com/slide/4924027/#.XdXrpneYvOg.twitter

Reply on Twitter 1197329570879410176Retweet on Twitter 1197329570879410176Like on Twitter 1197329570879410176Twitter 1197329570879410176
MedinolHqMedinol Software@MedinolHq·
19 Nov 2019

What is WEBDesk? Web based claims management tool Accessible from Detailed view on all claims submitted through MediSwitch Various. - ppt download https://slideplayer.com/slide/9168102/#.XdO2rploIWs.twitter

Reply on Twitter 1196722967545290752Retweet on Twitter 1196722967545290752Like on Twitter 1196722967545290752Twitter 1196722967545290752
Load More...
Medinol Practice Management | Medical Billing Software South Africa
  • Dept of Health
  • Board of HealthFunders
  • Medical Schemes
  • Contact Medinol
© Medinol Practice Management | Medical Billing Software South Africa 2021
Powered by WordPress • Themify WordPress Themes