|
NETCARE - NETCARE WELCOMES SAMDP AS STRATEGIC BEE SHAREHOLDER IN NETPARTNER NETWORK HEALTHCARE HOLDINGS LIMITED (Registration number 1996/008242/06) Code: NTC ISIN number: ZAE000011953 (`Netcare`) NETCARE WELCOMES SAMDP AS STRATEGIC BEE SHAREHOLDER IN NETPARTNER INTRODUCTION Netcare, Netpartner Investments Limited (`Netpartner`) and the South African Medical and Dental Practitioners Association (`SAMDP`) today announced an empowerment transaction in terms of which the SAMDP will be acquiring an immediate 10% stake in Netpartner via a new issue of shares by Netpartner for cash. In terms of the agreement the SAMDP has been given the opportunity to increase this shareholding to 26% within the short term. RATIONALE The SAMDP transaction will significantly enhance the network base of Netpartner by approximately 3 000 healthcare providers, placing it in a meaningful, strategic position within the South African healthcare market. The transaction increases the number of healthcare professionals as shareholders in Netpartner to more than 10 000, with approximately 4 700 being from previously disadvantaged communities. The SAMDP membership of doctors, dentists and specialists also include practitioners employed at Academic Institutions and in the Public Sector. The SAMDP will also participate at an operational level within the Netpartner structure with members of the SAMDP being appointed to the boards of Netpartner, Netdirect (Netpartner`s managed care subsidiary) and Medicross, in which Netpartner has a 20% strategic stake. OBJECTIVE Netpartner`s stated objective is to bring `Better Care to More People` via an alternative reimbursement model which offers patients a simpler, better product at more affordable prices. TRANSFORMATION Importantly, the 3 000 doctors associated with the SAMDP serve underprivileged communities throughout South Africa. Their collective association with Netpartner will ensure the important benefit of being able to provide greater access to healthcare to those who are most in need of it. Netpartner is committed to restructuring certain current healthcare reimbursement systems into new systems that promote and reward the delivery of high quality, cost-effective `health care` rather than the delivery of `sick care`. The most effective of these structures that has worked successfully in other countries is the Health Maintenance Organization (`HMO`) implemented by various US-based healthcare organisations, good examples of which include Sierra Health Plan and Kaiser Permanente. In HMO-type models, the financing and delivery of care is integrated with payments often made on a per-member-per-month basis rather than for each visit, treatment or procedure. This will improve affordability and accessibility and is aligned with Government`s strategy on Social Health Insurance. CONCLUSION The investment by the SAMDP places Netpartner in an ideal position to offer an all-encompassing and highly affordable healthcare service across all disciplines, on a broad geographic scale. The Netpartner provider model facilitates an effective, fully integrated solution to medical schemes through pro-active provider participation. Together with Netcare`s infrastructure, and other contracted provider capacity, it offers the most extensive provider network in South Africa. The SAMDP value proposition provides Netpartner with a much needed interface with patients in some of the more remote parts of the country while bolstering Netpartner`s presence in the lower income market. The members of the SAMDP on the other hand will benefit by being able to provide existing and future patients with a suite of affordable healthcare products, the costs of which can be economically managed. Netcare currently owns 48% of Netpartner (which percentage is likely to be maintained in terms of the commencing subscription agreement) and fully supports the broad based participation of the SAMDP as a `mile-stone for transformation` in South Africa. In addition to the shareholder and strategic support for this transaction, Netcare has provided certain guarantees to allow for the initial investment by the SAMDP into Netpartner. Importantly, the macro benefits of the intended Netpartner offering, is that patients will benefit from measured quality healthcare at more affordable prices and hopefully this initiative will be one of the catalysts to bring the public and private sectors closer together. The anticipated benefits of the strategic alliance with the SAMDP, Netpartner`s business model and the introduction of alternative reimbursive methods to make private healthcare more affordable and increase the number of insured lives, is seen as significant to the enhancement of stakeholder value going forward. 15 November 2004 Sandton Sponsor Merrill Lynch South Africa (Pty) Limited Date: 15/11/2004 12:32:03 PM Produced by the JSE SENS Department
| Profile Group (Pty) Ltd. has taken care in preparing all information on this website, but does not accept any liability for errors or out-of-date information. | |||||||||||||
| Other Profile Group sites: FundsData Online (unit trust data) | Profile Group corporate site | |||||||||||||
| [ Terms of Use | Privacy Policy | PAIA manual | FAQs/Help | Site Map | © Copyright Reserved 2026 ] | |||||||||||||
|
|||||||||||||
