Information Technology Editor
TECHNOLOGY firm Faritec has kicked off the launch of a new division by winning a R40m contract to handle the health care administration processes for Ingwe HPO.
Faritec's new operation, FariMed, will serve as an application service provider (ASP) by running the applications and systems used by medical scheme administrators on an outsourced basis. Its initial deal with Ingwe HPO, the healthcare administrator within African Life Assurance, will run for five years.
Ingwe HPO expected the agreement with FariMed to cut at least 30% off its information technology costs, said MD Peter Botha. The contract should let Ingwe HPO improve its customer service by giving it access to top-class IT systems without having to buy any hardware and software or running any technologies in-house.
Since technology typically accounted for about 30% of the overheads for medical aid administrators, any savings in that area had a significant impact on profitability, said Botha.
FariMed's medical administration and financial management systems will be independent of any healthcare organisation, and the company has set an ambitious target of capturing 30% of the market within two years. It will charge its customers a monthly fee based on the number of members in their medical aid schemes.
"We identified the opportunity to provide a fresh solution to any size administration business and to give an alternative to committing significant capital to depreciating IT assets," said FariMed director Peter Winn.
Faritec itself supplies information technology infrastructure, and the creation of this new division is in line with its recent efforts to increase its activities as a technology outsourcer. Last month it signed an empowerment partnership with the J&J Group, which bought a 30% stake in a R13,2m deal designed to raise Faritec's black profile.
Apr 24 2003 07:58:31:000AM Lesley Stones Business Day 1st Edition
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