LENMED AIR 2019.pdf

HOSTILE HEALTHCARE FUNDER REGIME INCREASED COMPETITION Medical schemes work to drive hospital tariffs lower and influence the manner in which hospitals operate. Aspects of these changes include: + Discovery and Government + Government Employees Medical Scheme (GEMS) dominance of the medical scheme sector + Medical scheme consolidation + Alternative reimbursement models New hospitals opening near Lenmed’s current operations. Operational changes in the healthcare industry lead to poor tariff increases and profit margin erosion. New licences issued in the vicinity of Lenmed facilities will dilute and reduce Lenmed’s market share. The DoH is licensing B-BBEE business entrepreneurs. + Lenmed works constantly to maintain strong relationships with its doctors + Investment in infrastructure and modern equipment to attract and retain sought-after medical personnel + Recruit expatriate doctors for our hospitals in Botswana and Maputo + Share scheme in place for loyal doctors + Marketing initiatives aimed specifically at recruiting doctors and specialists + Lenmed has implemented training programmes to upgrade employee skills + Urgent shortages are addressed through nursing agencies + We are awaiting a Government licence for our planned nursing academy + Introducing competitive remuneration benefits, particularly for managers and pharmacists + A share scheme is in place for long-serving employees + Lenmed is part of the collective NHN negotiating unit + Actuarial support to develop innovative offerings to medical schemes + Hospital efficiency drives to reduce costs per admission + Lodge objections through DoH and Competition Commission + Support NHN objections to DoH + Pursue other legal options + Relationships with medical MAFs Increasing competition + Making healthcare more efficient for patients and providers + Strategic differentiation + Economy + Technology LENMED ANNUAL INTEGRATED REPORT 2019 29