SIZWE, HOSMED GET GREEN LIGHT TO MERGE, CREATING SA’S 8TH LARGEST MEDICAL SCHEME

THE COUNCIL for Medical Schemes has given its stamp of approval to the merger of Hosmed Medical Scheme and Sizwe Medical Fund, creating South Africa’s eighth-largest open medical scheme. The merger brings together Sizwe’s 46 900 membership with Hosmed’s 21 000. According to these membership numbers, the merged entity becomes the eighth largest medical scheme in the country with the fourth-highest solvency ratio of the top 10 largest medical schemes, the company said in a statement yesterday. “There are no words to describe the significance of the series of events and business decisions that have been crowned by the birth of the entity that is Sizwe Hosmed Medical Scheme,” said Dr Simon Mangcwatywa, Sizwe Hosmed’s principal executive officer. “We can all be proud to bear witness to the birth of Sizwe Hosmed, as it represents the collective proverbial blood, sweat and tears of a group of individuals with the tenacity to see through a shared vision to its fruition.” He said the merger was beneficial to both schemes, where the combined balance sheet and increased membership size could unlock efficiencies and economies of scale to the benefit of all members. “Sizwe Hosmed members will benefit through a reduction in non-health-care expenses attributed to reduced operational scheme expenses,” he said. | Staff Reporter