Two of South Africa’s largest medical schemes‚ Bonitas Medical Fund and Liberty Medical Scheme (LMS)‚ have announced they are in discussions to merge.
Andrew Edwards (pictured) executive principal officer for LMS, said:
"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."
Bobby Ramasia principal executive officer for Bonitas, agrees with Edwards, adding that the two companies will work with the Council for Medical Schemes (CMS) to ensure that due process is followed and all necessary regulatory approvals are obtained.
Consolidation among medical schemes is an increasing trend, and a merge between Bonitas and LMS will result in several benefits. The new scheme would have a broader national footprint, better economies of scale to negotiate better rates and improved provider networks. Bonitas' strong financial stability and generally predictable claims history will also offer members of the new scheme better value.
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